Tuesday, April 16, 2024

DocuTrade Facilitates Unprecedented Trade Finance Transaction with Electronic Bill of Lading Conversion and Capital Provision

MUMBAI, India, Nov. 14, 2023 /PRNewswire/ — Yodaplus DocuTrade, in a collaborative endeavor with its ecosystem partner XDC Trade Network, has successfully executed a pioneering transaction by converting traditional paper Bills of Lading (BL) to electronic BL (eBL). This groundbreaking transaction demonstrates DocuTrade‘s prowess in digitizing trade documents, thereby also facilitating capital provisioning against the fractionalized eBL for a shipment duration of 7 days.

Yodaplus DocuTrade’s breakthrough in trade finance, conducts successful pilot digitizing bills of lading
Yodaplus DocuTrade’s breakthrough in trade finance, conducts successful pilot digitizing bills of lading

In this pilot, the shipper tokenized the eBL and fractionalized it, enabling capital provisioning for the shipment duration. This innovative approach, powered by DocuTrade, provided TradeFlow Capital, the shipper, with liquidity as soon as the shipment sailed, giving them a cash flow of 7 days (transit time). The ease of transaction was significantly enhanced as the trade documents were digitally created, making verification and transfer a seamless process. The commodity shipped was COPPER MILBERRY SCRAP for green recycling, with the transaction value pegged at USD 150K.

Participants in this pilot included TradeFlow Capital Management Pte Ltd for the USD TRADE FLOW FUND SP as the shipper, Propine as the digital asset custodian, and TradeFinex as the institution liquidity provider. The solutions utilized in this pilot comprised of the XDC Trade Network as the marketplace for trade finance, DocuTrade by Yodaplus for digitizing trade documents, and Open Attestation Framework for ensuring MLETR compliant standards.

This transaction also exemplifies how liquidity can be availed from alternative financiers by tokenizing real-world assets. By facilitating a smooth transition from paper to electronic documentation, DocuTrade has significantly contributed to enhancing the speed and efficiency of trade finance transactions.

In a new breakthrough, DocuTrade has recently incorporated an innovative account abstraction feature, eliminating the typical hassles associated with blockchain usage such as managing seed phrases and dealing with wallet pop-ups. This development ensures that parties can harness the advantages of a public blockchain, like enhanced security and transparency, without being bogged down by its complexities. By simplifying the user experience while retaining the core benefits of blockchain technology, DocuTrade continues to lower the barriers for entry, making digital trade finance more accessible and user-friendly for all stakeholders involved.

About DocuTrade

DocuTrade, a Yodaplus product, is at the forefront of transforming the trade finance sector by digitizing trade documentation processes. With its user-centric design, DocuTrade not only streamlines documentation processes but also provides a robust platform that caters to the evolving needs of the global trade finance ecosystem. By marrying cutting-edge blockchain technology with a simplified user interface, DocuTrade is poised to drive the digital transformation in trade finance, making it more efficient, secure, and accessible for all stakeholders.

Press Contact

Amit Pareek
Senior Marketing Manager
amitp@yodaplus.com

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