Trade Finance Platform
The Comdex trade finance platform allows financial organizations to finance open trades that will be settled on the Comdex platform. The transparency of the platform coupled with increased trade visibility helps traders establish credibility and access capital.
Trade Finance consists of products, such as letters of credit, to reduce transaction
risk and finance working capital requirements. Simply put, an exporter requires an
importer to prepay the shipped goods. The importer reduces risk by asking the
exporter to document that the goods have been shipped. The importer’s bank assists
by issuing a letter of credit to the exporter, providing payment upon presentation
of documents. Increasingly, though, trade occurs through open account transactions,
where the goods are shipped and delivered before payment is due. That increases risk
for the exporter, who now needs more financing of working capital.
Trade finance is inherently decentralized. Trying to match centralized architecture to this decentralized process has led to the data silos and problems faced today. By changing the structural foundation of trade finance, blockchain technology presents an opportunity to narrow gaps in an unconventional way. Comdex is leveraging the blockchain technology to provide a scalable, secure and easily accessible solution for the commodity trade.
Comdex trade finance platform provides private-permissioned enterprise blockchains that are built with the requirements of companies with the most stringent security and compliance standards in mind, and that focus on optimizing at the level of an industry rather than at the level of individual firms, are optimal for the particular characteristics of trade finance.