The use of distributed ledger technology in the trade finance space is moving fast.
Today’s DLT-trade ecosystem can be sectioned into a series of eight major consortia and networks that are taking strides in various areas of the space.
At the core of each of these lies an underlying technology. These core infrastructure products are built on and customized by consortia leads, creating a form of value. External players, from banks to shippers, plug into these platforms to harness this value for themselves or to pass it along to their clients
These consortia and platforms operate in four fundamental sub-categories: Letters of credit and bills of lading, open account trade, commodities, and shipping/freight forwarding. Each of these sectors remain strongly interlaced within the trade finance space.
In the following few articles on TFG we will deep dive into the underlying DLT technologies, exploring their technical functionality and key differences from a managerial level. After that we will explore each of the eight platforms that operate on these technologies, again looking at the fundamental differences among them and the various niches they are seeking to address.
The Current State of the Market
This is a depiction of the current state of the market. Each segment represents a network in the ecosystem. The underlying technology is shown at the core, followed by the network leads, and finally the participants. There are several more consortia and networks represented within the trade finance ecosystem; this paper highlights the major players with 8+ companies as key members or shareholders.
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