SBI Holdings will work with UAE firm TradeFinex on a Japanese joint venture aimed at boosting adoption of its enterprise blockchain platform running on the XDC Network.
SBI Holding and TradeFinex will look to drive trade finance adoption of EVM-compatible enterprise blockchain XDC Network through a new joint venture in Japan.
UAE-based firm TradeFinex operates its own decentralized platform operating on the XDC Network for trade finance originators to connect to a variety of banks and lending institutions. Aimed at enterprise use cases, TradeFinex is primarily focused on providing blockchain-based trade finance products including invoicing, letters of credit, purchase order finance and supply chain finance.
The XDC Network is an EVM-compatible layer 1 network that features interoperable smart contracts. Its documentation describes the protocol as a “highly optimized, bespoke fork” of Ethereum that uses a delegated proof-of-stake (XDPoS) mechanism to achieve fast transaction times, low gas fees and high transaction per second capacity.
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XDC protocol operates using its native XDC token which serves as a reserve cryptocurrency for third party decentralized applications running on the network. The token is intended to be used for a variety of use cases, including DApp payment settlements, micropayments, transaction costs and smart contract deployment and settlement.
TradeFinex has been involved in collaborations with the World Trade Organization, International Chamber of Commerce and various government agencies to explore blockchain as a means to overhaul the speed, transparency, costs and traceability of trade finance.
A report from the World Trade Organization in 2020 highlighted TradeFinex as a network that operates “as both permissioned and permissionless: permissionless for public verification, but permissioned for selective data sharing.”
At the time of the publication, a number of participants were using TradeFinex including Singapore MAS regulated Validus, Enigio, Ramco, The International Trade and Forfaiting Association and WOA.
An announcement shared with Cointelegraph outlined the goal of the joint venture to localize XDC Network information and documentation in Japan, proliferate XDC tokens to local cryptocurrency exchanges and deploy trade finance solutions across the Asia-Pacific region.
The launch of the joint ventures comes after recent reports from Japan that its government intends to permit startups to raise funds through the issuance of cryptocurrency tokens instead of conventional stock listings.
Japan’s Financial Services Agency also announced its plans to amend its tax code related to cryptocurrencies in August 2023 to take a more active role in cryptocurrency regulation. This could include exemptions from paying “unrealized gains” tax on cryptocurrencies.
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