Non-Fungible Tokens are Changing the Future of Trade Finance

With the rise of digitization in the pandemic and post-pandemic era, various industries are realizing the significance of blockchain technology and its huge possibilities. The problem with many industries, including trade finance, is that they are still dependent on paper-based manual processes, leading to inaccuracies in documentation and higher costs.

Here’s good news: Blockchain along with other digital technologies are helping trade finance sectors to digitize their processes. Since trade is primarily decentralized in nature, blockchain, which is a decentralized public ledger, would be a perfect fit for trade finance.

With the evolution of blockchain technologies, one key development that is benefiting trade finance participants is the non-fungible token system. The NFT or a non-fungible token refers to a non-interchangeable and unique unit of data, which is securely stored on a shared digital ledger, known as a blockchain.

Trade finance firms can easily access, trade, or sell this stored data within a safe and protected environment. Various types of NFT data files may be included within a blockchain, like photos, audio, text, videos, and so on, and each of these unique items can be reproduced easily. NFTs provide their users with public ownership proof using blockchain technology.

The concept of tokenization is becoming extremely popular for its high usability and flexibility, especially during these challenging times. The trade finance industry is backed by endless financial institutions, including banks, insurers, investors, customs officials, and others.

You may have already heard of numerous NFTs associated with the entertainment industry, but they have huge applicability potentials in the trade finance sector and other financial industries. Today, trade finance platforms have started implementing NFTs. For instance, Marco Polo, an end-to-end trade platform, has already started tokenizing its invoices and payment processes.

Besides, storing one’s ownership data on the blockchain via NFTs eliminates any manual errors and hectic paperwork while reducing costs. To handle asset distribution tasks in trade finance, firms are using both tokenization and smart contacts to digitize and modernize their processes completely.





Other news

Most Recent Blogs View All Blogs

12 May

Top Ways Fintech Industry Is Getting Transformed Through Blockchain

If you are a businessman who is indulged in any kind of trade ie. import-export activity, you might ...

10 May

Fintechs Are Proving To Be A Boon For Small Exporters

Since the global pandemic of Covid-19 hit the world economy, the global traders have gone into deep ...

25 Apr

Letter of Credit Issuance Process - An Important Trade Finance Instrument

Looking for a letter of credit? This guide covers what an LC is, how it works & its process. Rea...

Disclaimer

Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing help@emeriobanque.com

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at compliance@emeriobanque.com if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.