SBI collaborates with UAE’s TradeFinex for a crypto venture in Japan.

SBI collaborates with UAE's TradeFinex for a crypto venture in Japan.

SBI Holdings and TradeFinex Joint Venture to Drive Trade Finance Adoption of XDC Network


SBI Holdings and TradeFinex have announced a joint venture in Japan with the aim of driving trade finance adoption of the Ethereum Virtual Machine-compatible enterprise blockchain, XDC Network. TradeFinex, an UAE-based firm, operates its own decentralized platform on the XDC Network, connecting trade finance originators to banks and lending institutions. The platform focuses primarily on providing blockchain-based trade finance products such as invoicing, letters of credit, purchase order finance, and supply chain finance.

The XDC Network is an EVM-compatible layer-1 network that utilizes interoperable smart contracts. It can be described as a “highly optimized, bespoke fork” of Ethereum, employing a delegated proof-of-stake (DPoS) mechanism to achieve fast transaction times, low gas fees, and high transaction per second capacity.

The network operates using its native XDC token, which serves as a reserve cryptocurrency for third-party decentralized applications (DApps) running on the network. The XDC token is designed for various use cases, including DApp payment settlements, micropayments, transaction costs, and smart contract deployment and settlement.

TradeFinex has been actively involved in collaborations with organizations such as the World Trade Organization, the International Chamber of Commerce, and government agencies to explore the potential of blockchain in revolutionizing trade finance. Their network operates as both permissioned and permissionless, allowing for public verification while also enabling selective data sharing.

The joint venture between SBI Holdings and TradeFinex aims to localize XDC Network information and documentation in Japan, expand the presence of XDC tokens on local cryptocurrency exchanges, and deploy trade finance solutions across the Asia-Pacific region. This collaboration comes at a time when the Japanese government is considering allowing startups to raise funds through the issuance of cryptocurrency tokens instead of traditional stock listings. The announcement aligns with Japan’s Financial Services Agency’s plan to take a more active role in cryptocurrency regulation, including potential exemptions from paying “unrealized gains” tax on cryptocurrencies.

In conclusion, the joint venture between SBI Holdings and TradeFinex represents a significant milestone in driving trade finance adoption of the XDC Network in Japan and the Asia-Pacific region. By leveraging the capabilities of the XDC Network and TradeFinex’s expertise in blockchain-based trade finance solutions, this collaboration aims to enhance speed, transparency, cost-efficiency, and traceability in trade finance operations. As the blockchain industry continues to evolve, partnerships like this play a crucial role in the widespread adoption of blockchain technology in various sectors.