Blockchain secondary market for trade finance launches in Dubai

On Wednesday in Dubai, Trade Assets launched as a blockchain marketplace for trade finance with 25 banks. The vast majority of the banks (listed below) are Bangladeshi including at least three of the top ten banks in the country. The platform helps to digitize the secondary market for trade finance between financial institutions.

The problem

Typically banks have targets or limits for the amount of trade finance they plan to carry on their books. If they reach capacity, rather than turning away commercial clients, they will sell some of their existing portfolios to other banks. The flipside is that some banks might undershoot their targets so are happy to buy trade finance assets from fellow financial institutions. Trade Assets estimates the addressable market size for secondary trading at $1 trillion.

Article continues …

---