Commercial finances rarely appear on the first pages of newspapers. But behind the scenes it is the basis Over $ 30 trillion In annual global trade. Despite this, the systems that supply, remain ponderous paper, leisurely and excluded.
Miniature and medium -sized enterprises (SMEs) are still routinely refused financing due to crushed infrastructure, and therefore encounter barriers while participating in global trade. In its latest report, Cointelegraph Research analyzes the growing number of institutions and governments asking if Blockchain can offer a more effective model. One significant project in this area is XDC network.
To learn more about how XDC uses blockchain to digitize commercial documents, download full report here
Global gap in commercial finances: a problem 2.5 trillion USD
Despite the technological progress in other industries, trade financing is still dominated by manual processes. From 2022, Only about 2% All transport accounts were issued electronically. Most cross -border trade still includes couriers, faxes and soggy signatures.
This ineffectiveness drives a global gap in trade financing, estimated at USD 2.5 trillion. The difference refers to unmet demand for financing from other credit companies. This hinders their ability to fulfill orders, expand operations or participate in global supply chains. This gap means the most affecting SMEs in emerging markets.
Digitization barriers are not only technical, but also legal. Until recently, electronic transport bills or bills of exchange did not have the legal status of their paper counterparts. It begins to change, at least in some places. G7 countries are in line with the Act on the UNCiTral model in the field of electronic transmitable entries (dairy), which is aimed at ensuring equal enforcement of digital documents.
As a result of a consortium of industry players Moving plans In the direction of 100% of the digital acceptance of transport accounts by 2030. Despite this, the policy needs technology to support it, and there they put their stigma hybrid blockchain platforms such as XDC.
Which distinguishes the XDC approach
The XDC network is a public blockchain built for cases of using enterprises, such as commercial finances. His hybrid architecture enables integration with private systems, while offering public transparency if needed. It is too ISO 20022Which makes it compatible with the standards of sending messages used by global banks.
XDC is already used in pilots in Asia, Latin America and Africa. This support Over 2,000 transactions per second with fees in almost zero. In addition, the network is interoperable with over 125 blockchains via the layer protocol.
Its positioning is clear: do not interfere with commercial financing, but in order to modernize its facilities with programmable infrastructure. XDC focuses on enabling digital assets, automation and capital access without requirement that institutions abandon known work flows.
To learn more about how XDC uses blockchain to digitize commercial documents, download full report here
From invoices to digital assets
Platforms like Tradefi.network Let companies represent classic commercial documents, such as invoices, transport accounts or accreditation, as digital tokens on XDC.
This has two key benefits. First of all, it allows you to automate and verify in real time. Secondly, it opens the door so that capital from outside the bank enters the market. Toxhenized trade instruments can be sold to global investors and ensure the liquidity of SMEs, which otherwise could be overlooked by classic lenders, such as banks.
Some of these concepts have already been tested in the real world. In Latin America SMEs Secured financing via tokenized invoices on XDC. In Asia, an electronic transport list registered on the web was used as a loan security. It helped shorten the payment time from two weeks to less than three hours.
Finance
Whether blockchain becomes a lasting element of trade financing is still uncertain. Legal harmonization remains uneven for jurisdiction. Data privacy, compliance and interoperability with older systems still work. However, efforts like XDC suggest that focusing on speculative employ of employ on more targeted, functional applications. Instead of replacing the system, these technologies are slowly beginning to match it, especially in places where existing tools are not sufficient.
To learn more about how XDC uses blockchain to digitize commercial documents, download full report here
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