Traxia is a B2B trade finance platform that allows SMEs to access short-term funding by using their accounts receivables as collateral. Institutional investors can buy and trade this newly created tokenized debt securities on a global market.
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Why people like it:
- First project invested by Cardano (through Emurgo investment arm)
- Targets a global $43 trillion market
- First use-case with Porsche Design in China
- Platform up and running (second version in April 2018)
How does it actually work?
- A Small Medium Enterprise (SME) creates a profile and Uploads their invoices with a large multinational company (MNC) to the platform.
- The MNC verifies the invoice and if in agreement with the terms, accepts the debt by using their private key.
- We create a digital asset (smart-contract) out of that invoice - this debt security can now be traded.
- Institutional investors make an offer to buy this debt security at a discount
- The Investor who bids the lowest discount acquires the debt security token by paying the SME in a Fiat currency.
- The Investor now owns the security. He can also trade it on a secondary market.
- On the due date, the MNC pays the investor or the current holder of the debt security back in fiat currency