According to Cointelegraph, SBI Holding and UAE-based firm TradeFinex have formed a joint venture in Japan to promote the adoption of the EVM-compatible enterprise blockchain XDC Network for trade finance. TradeFinex operates a decentralized platform on the XDC Network, connecting trade finance originators with banks and lending institutions. The platform focuses on providing blockchain-based trade finance products such as invoicing, letters of credit, purchase order finance, and supply chain finance.
The XDC Network is a layer 1 network featuring interoperable smart contracts and is described as a 'highly optimized, bespoke fork' of Ethereum. It uses a delegated proof-of-stake (XDPoS) mechanism to achieve fast transaction times, low gas fees, and high transaction per second capacity. The native XDC token serves as a reserve cryptocurrency for third-party decentralized applications running on the network and can be used for various purposes, including DApp payment settlements, micropayments, transaction costs, and smart contract deployment and settlement.
TradeFinex has collaborated with the World Trade Organization, International Chamber of Commerce, and various government agencies to explore the potential of blockchain technology in improving the speed, transparency, cost, and traceability of trade finance. The joint venture aims to localize XDC Network information and documentation in Japan, distribute XDC tokens to local cryptocurrency exchanges, and deploy trade finance solutions across the Asia-Pacific region. This partnership follows recent reports that the Japanese government plans to allow startups to raise funds through the issuance of cryptocurrency tokens instead of conventional stock listings. Japan's Financial Services Agency also announced plans to amend its tax code related to cryptocurrencies in August 2023, potentially including exemptions from paying 'unrealized gains' tax on cryptocurrencies.
