XDC Trade Network, the global trade finance ePlatform that uses XDC protocol to conduct, document and secure digital trade finance, has a new achievement under its belt now as it has completed its first ePN transaction on the XDC Network. This important innovation indeed represents a major evolution for the streamline and the securization of the cross border trade finance operations.

The transaction for case involved an Indian exporter called Conqoreeon Exim Private Limited to provide an ePN to TradeFinex for pre-shipment finance of 42500 USD shipment amount. It is important to note that the electronic promissory note (ePN) has been produced with the help of the Credore platform implementing the TradeTrust utility on the XDC Network and corresponded to the MLETR requirements. Data adheres to the specific standards of ICC and DSI, while the framework of DLPC Business Best Practices by BAFT were also incorporated to meet the standard.

This ePN transaction signifies a significant advancement in trade finance by: 

Reducing Processing Times: Some of these advantages include; Since electronic documents are not in hard copy, the approval of documents which usually takes a lot of time is hastened.
Enhancing Security: Digital financial assets’ legal tender status are protected by standardised digital instruments and reliable LEI from GLEIF to decrease the risk of fraud and identification of the parties.
Promoting Transparency: Taking the usage of digital identity with public key, legitimate parties involved in the transaction can be easily verified by the ecosystem hence creating trust.
Improving Efficiency: Hence, the ePN was created and transferred within several minutes while keeping in mind that the same work took, days prior to, several days for the paper-based work flows. This hastens the payment and, important for short haul transports and exports, and gives exporters leverage in getting affordable finance.

Erasing the issues and costs tied to previous pre-shipment financing, the XDC Trade Network’s ePN is a faster, more secure, and cheap compared to the traditional strategies in the context of international trade transactions. There is nothing quite like this development to offers immense potential to transform the trade finance environment.