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TradeIX Is Leveraging Blockchain Technology To Revolutionize Trade Finance

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TradeIX is rewiring trade finance by providing the most connected and secured platform infrastructure for banks and their corporate clients, asset managers, B2B networks and value-added service providers. To find out more about their platform we sat down with Oliver Belin, CMO of TradeIX:


Q: Could you provide our readers with a brief introduction to TradeIX?

A: TradeIX is revolutionizing trade finance by providing an open platform and technology services for trade finance. We are changing the way how working capital is financed by connecting on our platform financial institutions, their clients as well as service providers, B2B networks, credit underwriters leveraging distributed ledger technology.

We are driving a paradigm shift in the way we facilitate the flow of goods, money, and credit in global trade. Built on distributed ledger technology, our platform’s applications, developer tools, and core protocol represent the dawn of the “internet of trade”.

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Q: Tell us something more about the TIX platform?

A: The TIX platform provides applications, APIs, rules engines, and core infrastructure powered by distributed ledger technology. With the TIX platform trading parties including suppliers, buyers as well as banks, service providers, B2B networks, and credit underwriters can connect to each other more easily and flexible.

Our platform allows to manage more trade finance programs and lower the total costs by enabling financial institutions to transact directly, instantly and more efficiently with their clients and their trade ecosystem.

The TIX platform provides:

● The world’s first platform leveraging blockchain for trade finance transactions
● The world’s first solution allowing user to develop its own trade finance application with open communication standards (APIs)
● The world’s first graphical interface for the creation and management of trade finance smart-contracts

The platform is based on four components. TIX Apps are powerful open-account trade finance applications designed for end users. TIX Developer is provided to developers for connecting, building, testing and deploying applications, APIs leveraging our developer tools. TIX Composer represents a rules engine to orchestrate trade finance interactions between the different parties such as buyers, suppliers, funders, insurance, etc. TIX Core is an open, agnostic, distributed ledger infrastructure to record trade finance transaction flows.

Q: What are some of the key challenges you are solving?

A: Today, trade finance operates in a high cost, high maintenance old world model involving multiple parties, overreliance on human intervention relying on antiquated, disconnected systems with semi-automated processes still producing lots of paper to share information and trigger next steps.

Global trade is therefore extremely complex, risky, inefficient, expensive and exclusive. Currently, trade finance only involves some few financial institutions as well as large corporate suppliers and buyers. As a result, a huge opportunity lies unserved to improve systems and connectivity of all parties including financial institutions who are looking to offer trade finance and companies who are in need of working capital finance solutions.

For the first time in history, we have both the opportunity and the tools needed to transform and rewire the world’s global trade infrastructure. In doing so, we can make fundamental improvements to the benefit of the entire trade ecosystem, offering trade finance solutions to millions of currently excluded businesses, and create and deploy entirely new businesses and business models for global trade.

TradeIX is superseding this highly inefficient model by deploying a better connected, highly automated and far more open infrastructure, enabling more efficient trade finance solutions. It does this through the creation of trusted and permissioned interactions between corporations, B2B networks, service providers and financial institutions.

TradeIX allows each participant to use dedicated trade finance applications (TIX Apps) or develop their own through TIX Developer. All participants exchange data securely trough APIs developed by TradeIX. By applying blockchain technology and API connectivity we help:

● Increase visibility and transparency
● Reduce complexity and the number of intermediaries involved
● Reduce settlement, custodian and counterparty risk
● Manage credit risks better and more efficiently

Q: Who are the primary users of TradeIX?

A: The primary users of our platform and trade finance solutions are financial institutions such as banks. We help them to operate with different technology components that will get them better connected internally and externally and hence give them access to a wider range of trade flows resulting in new revenue opportunities. Our platform also improves their capital management by enhancing trade asset distribution and operational execution.

Other users are large corporates and their treasury teams. We provide them the opportunity to get access to trade finance solutions of multiple funding providers by improving how they connect, access and interact with their banking partners.

We also work with B2B networks, e-invoicing and working capital solution providers and help them offering additional services to their clients that generate new revenue streams by connecting them to multiple funding parties.

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Q: What are your highlights of this year?

A: There have been several highlights this year. In September, we launched, with enterprise software firm R3 and over a dozen international banks, an industry initiative, called Marco Polo focusing on the overhaul of open account trade finance infrastructure. Through this platform, banks such as Commerzbank, BNP Paribas, BBVA or ING will be able to automate pre- and post-shipment financing and risk mitigation for their corporate clients around the world.

In turn, corporate buyers and sellers gain access to light and flexible API-driven technology solutions that help simplify trade, improve visibility into trade flows, and provide access to much needed credit and risk mitigation services at critical points in the trade lifecycle.

This year, we also completed together with AIG and Standard Chartered plc the first blockchain-enabled trade finance transaction for a global logistics company. This invoice finance solution allows the logistics company to help its customers extend their payment period whilst maintaining the company’s receivables at current terms.

Beyond leveraging blockchain, the other unique aspect of this solution was that there was no new application deployed to support this transaction. The seller used its ERP system to select invoices to sell and then reconcile at maturity. Standard Chartered leveraged their existing receivable finance solution to process those invoices and monitor their statuses. And AIG provided the insurance on the transactions. TradeIX managed the data processing leveraging TIX APIs and rules engine to be sure eligible invoices were passed between the parties for sale. TradeIX also managed the maturing process with the reconciled invoices being paid to the bank at maturity.

We were also recognized by several prestigious awards for our innovative platform and solutions this year including the “Best Innovator in Global Trade” by Trade Finance Global and Supply Chain Finance Innovation of the year by the SCF Community.

Q: What can we expect from TradeIX in the future?

A: We will continue executing our vision to rewire the trade finance ecosystem and connect the trade finance industry. We will focus on the Marco Polo initiative together with our partner R3, increasing the number of members and delivering cutting-edge trade finance solutions and infrastructure powered by distributed ledger technology.

Additionally, we are working on some innovative ways to process trade finance transactions that could disrupt the way trade if financed today. It will open the doors for more companies to be financed more efficiently by financial institutions.

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