Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperwork, limited transparency between parties, and financing constrained to assets already held by major institutions. Blockchain delivers a Trade Finance Automation opportunity to transform trade finance through cryptographic trust mechanisms, transparent documentation via distributed ledgers, tokenization of assets into tradable crypto instruments, automation by smart contracts, and decentralized financing capacity.
The result is needless friction through every cross-border transaction - limited transparency leads to delays in validating documentation or assets, financing remains restricted to major players, and settlement limps along a web of intermediaries. These inefficiencies impose billions in costs through delayed transactions, financing fees, and revenue losses.
Read More: https://www.emeriobanque.com/blogs/blockchain%27s-impact-on-trade-finance-shaping-global-commerce
