Trade Finance Marketplace

Tradeleaf ecosystem participants include traditional trade finance industry players and crypto liquidity providers willing to participate in trade finance processes. Both categories act as lenders on the Tradeleaf Platform. However, their tools and workflows are different, considering the peculiarities of traditional and crypto financing methods.

Accordingly, Tradeleaf develops two different platforms to provide the necessary tools and solutions for both crypto and banking financing.

Tradeleaf Trade Finance Marketplace is a non-custodial solution that allows traditional liquidity providers to participate in the Tradeleaf trade finance ecosystem by lending funds to suppliers. The platform’s design provides traditional liquidity providers i.e., banks, financial institutions, and high-net-worth individuals looking for alternative sources of yield, with comprehensive deal financing and insurance functionalities.

Marketplace Modules

Tradeleaf Trade Finance Marketplace provides participants additional value through two main platform modules - payment gateways and the liquidity provider dashboard.

Payment gateways are API solutions Tradeleaf integrates to create a vast bank connectivity network. It brings more opportunities to traditional liquidity providers worldwide by giving them access to the Tradeleaf ecosystem.

Connected to Tradeleaf, banks of consignees, consigners, and liquidity providers will be able to execute transactions between each other more efficiently using an integrated payment gateway.

Trade Finance Marketplace Workflow

The workflow starts with onboarding, which requires identity or company verification. To complete onboarding, traditional liquidity providers should provide the necessary documentation. The automated system checks it first, and Tradeleaf Moderators verify the results afterwards.

After the onboarding & verification processes are complete, traditional liquidity providers can navigate the Deal Marketplace, study relevant deals and documentation provided, and choose how to interact with traders (SME, MSME, MSE, or MNC)

Traditional liquidity providers can finance the deal and provide insurance by lending funds to the recipient and giving guarantees to the buyer. The consignee must return the funds with interest after the deal project is concluded.

By agreeing to finance the deal, the traditional liquidity provider is required to issue a letter of credit (independently, if the liquidity provider is a bank or using a personal bank), which becomes a guarantee for the supplier. After the supplier exports goods (or any other object of trade deal), an consigner can sell them to final recipients (merchants, retail customers). Consigners repay loans to the traditional liquidity provider with interest from sales profit.

To insure the deal, both the buyer (consigner) and liquidity provider should agree on the details of the service provided, including service fees charged by the insurer.

By insuring the deal, the traditional liquidity provider mitigates risks for the consigner and issues a letter of guarantee, which assures the consigner that a particular trade object procurement will happen.