SBI Holdings and TradeFinex have started a ground-breaking joint venture in Japan that is ready to transform trade finance by utilizing the enterprise blockchain, XDC Network, which is compatible with the Ethereum Virtual Machine. The partnership is expected to accelerate blockchain adoption in the area of trade finance, changing the way that money is transacted.
TradeFinex, an influential player based in the United Arab Emirates, has successfully established its decentralized platform on the XDC Network. This innovative platform facilitates seamless connections between trade finance originators and a spectrum of banking and lending institutions.
Focusing primarily on enterprise solutions, TradeFinex offers an array of blockchain-powered trade finance products, encompassing invoicing, letters of credit, purchase order finance, and supply chain finance.
The XDC Network, a marvel of blockchain technology, stands as an Ethereum Virtual Machine-compatible layer-1 network with the power of interoperable smart contracts. It is described as a “highly optimized, bespoke fork” of Ethereum, incorporating a delegated proof-of-stake (DPoS) mechanism that paves the way for rapid transaction processing, minimal gas fees, and remarkable transaction throughput.
At the core of the XDC Network’s operations is its native XDC token, serving as a reserve cryptocurrency that fuels third-party decentralized applications (DApps) running on the network. The XDC token boasts a versatile range of use cases, spanning DApp payment settlements, microtransactions, transaction-related costs, and the deployment and settlement of smart contracts.
TradeFinex has been a pivotal player in various collaborations, working closely with the World Trade Organization, the International Chamber of Commerce, and government agencies. These partnerships have been dedicated to exploring the potential of blockchain technology in enhancing the speed, transparency, cost-effectiveness, and traceability of trade finance.
This landmark collaboration comes on the heels of recent reports revealing Japan’s intention to allow startups to raise capital through cryptocurrency token issuance, rather than the conventional stock market route. Additionally, Japan’s Financial Services Agency is gearing up to amend its cryptocurrency-related tax code, signaling a proactive stance in regulating the cryptocurrency market, which could include exemptions from the “unrealized gains” tax on cryptocurrencies.
An extraordinary choice to transform international remittances in Southeast Asia was made in September 2023 by the SBI Group. They committed to offering a quick and affordable XRP-based remittance service to bank accounts in the Philippines, Vietnam, and Indonesia by working with Ripple and SBI Ripple Asia. This collaborative partnership highlights the financial sector’s unwavering commitment to innovation by significantly expanding the Ripple-powered services already provided by SBI Remit.
Since 2017, SBI Remit has taken the lead in using Ripple’s cutting-edge payment solutions. It aggressively entered the cryptocurrency space last year, becoming the first company in Japan to offer remittance services using XRP to cryptocurrency wallets in the Philippines.
The joint venture between SBI Holdings and TradeFinex holds a clear mission: to localize XDC Network information and documentation for Japan, facilitate the introduction of XDC tokens into local cryptocurrency exchanges, and propagate trade finance solutions across the Asia-Pacific region.