Tradeteq Selected XinFin’s XDC Network To Launch TRADA Tokens
As per the latest news, Tradeteq, a World Economic Forum, has considered the XDC Network to introduce its TRADA Tokens, the first ever fully regulated, trade finance-backed fungible security tokens. This initiative is expected to bring vital liquidity to the trade finance sector by securing a conventionally liquid asset class on the XDC Network - A public, decentralized location.
The association addresses the next high-quality development in the Tradeteq and XinFin partnership that first launched trade finance-based non-fungible tokens (NFTs) for institutional investors in September 2021. Similar to TRADA’s introduction, the NFT offerings leveraged XinFin’s XDC Network to transform the trade finance assets into non-fungible tokens, which Tradeteq re-bundled and dispersed to investors.
By utilizing fungible security tokens with concrete collateral (TRADA), Tradeteq gears up the process of accelerating on-chain transaction volume of regulated, real-world assets as well as enlarges access to the trade finance market to both retail and institutional investors. Earlier, Tradeteq’s Access Lite supported secondary trading of trade finance assets. It was the very first marketplace for buy-side investors willing to participate in secondary trading.
“The launch of TRADA Tokens is a vital step towards the democratization of trade finance through XDC’s enterprise-grade blockchain technology. Earlier, investing in trade finance was restricted to only banks and larger institutional investors, but now private sectors can also invest in the real economy. The XDC Network is our selected blockchain to fuel this system and XDC is the only crypto asset capable of purchasing TRADA.” stated Nils Behling, CFO, and co-founder at Tradeteq.
Trade finance assets, which depend on the flow of tangible goods across the world, customarily convey little risk and yet assure investors of a constant flow of stable rewards. Regardless of its appeal as an asset class, however, trade finance is currently hard to be invested in due to the extreme barriers to entry, including poor visibility for beneficiaries, inadequate levels of collateral, and difficult regulatory and supply chain procedures.
XDCTEQ, a new entity laid out to provide the TRADA tokens, is set to eliminate these barriers by fractionalizing and tokenizing pools of re-bundled, secularized trade finance assets on the XDC Network. At the same time, the providings will facilitate SMEs the world over unmatched access to the financing on which they rely. Additionally, Tradeteq’s deal with Microsoft simplifies the trade finance process.
“XDC Network is decentralized and has been optimized for company applications over years. As the reliable network for its token issuance, Tradeteq facilitates further validation of the XDC Network’s real-world utility,” stated Atul Khekade, co-founder of the XDC Network.
This TRADA Token’s introduction showcases blockchain’s consideration in a regulated area. It positions the XDC Network as an efficient way to connect the real-world finance origination with Defi markets, assuring several reports by Deloitte, JPMorgan, and CoinDesk that anticipate an increase in the tokenized assets on the blockchain in the upcoming years.