- SBI Holdings and TradeFinex have partnered in Japan to promote the adoption of the XDC Network, an enterprise blockchain compatible with the Ethereum Virtual Machine.
- TradeFinex operates a decentralized platform on the XDC Network, serving as a bridge between trade finance originators and banks and lending institutions.
- The XDC Network uses a delegated proof-of-stake mechanism for speedy transaction processing and high throughput.
SBI Holdings and TradeFinex have joined forces in Japan to boost the adoption of XDC Network, an enterprise blockchain compatible with the Ethereum Virtual Machine (EVM). TradeFinex, headquartered in the United Arab Emirates, operates a decentralized platform on the XDC Network, serving as a bridge between trade finance originators and various banks and lending institutions.
TradeFinex mainly focuses on providing blockchain-based trade finance solutions, including services like invoicing, letters of credit, purchase order finance, and supply chain finance, tailored for enterprises.
The XDC Network functions as a layer-1 network that’s compatible with EVM and features interoperable smart contracts. It’s often described as a specialized variant of Ethereum, using a delegated proof-of-stake (DPoS) mechanism to ensure speedy transaction processing, minimal gas fees, and high transaction throughput.
Transactions on the XDC Network are powered by its native XDC token, which acts as a reserve cryptocurrency for third-party decentralized applications (DApps) running on the network. This versatile token serves various purposes, including settling DApp payments, facilitating micropayments, covering transaction fees, and handling smart contract deployment and settlement.
TradeFinex has actively collaborated with notable organizations such as the World Trade Organization, the International Chamber of Commerce, and various government agencies. Their aim is to explore how blockchain technology can enhance trade finance by improving speed, transparency, cost-efficiency, and traceability.
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In a 2020 report, the World Trade Organization recognized TradeFinex’s unique position as both a permission and permissionless network, allowing for public verification while selectively sharing data.
The partnership’s goals include localizing information and documentation about the XDC Network in Japan, making XDC tokens more widely available on local cryptocurrency exchanges, and implementing trade finance solutions across the Asia-Pacific region.
This announcement comes on the heels of recent reports from Japan indicating the government’s openness to allowing startups to raise capital through cryptocurrency token issuance instead of traditional stock listings. Furthermore, Japan’s Financial Services Agency has revealed plans to amend its cryptocurrency-related tax code in August 2023, signaling a more proactive role in cryptocurrency regulation, including potential exemptions from taxes on “unrealized gains” from cryptocurrencies.
