Tradeteq, which provides technology for trade finance asset distribution, has completed what it is calling the first nonfungible token (NFT) transaction based on trade finance, Global Trade Review reported.
The transaction was done on Singapore’s eXchange inFinite’s (XinFin) XDC network, according to the report. The transaction was conducted with Accelerated Payments, a Dublin invoice finance company, as the asset originator. The trade finance assets were turned into NFTs with the XDC network’s blockchain tech, and now institutional investors will have the ability to buy and sell the tokens, which represent the value of an off-chain asset and give the token holders legal entitlement to them.
“The collaboration between XinFin, Tradeteq and Accelerated Payments completes the chain from investor right through to the recipient of funding with complete transparency, accountability and liquidity,” said Accelerated Payments Founder and CEO Ian Duffy in the report. “This important step demonstrates the ability to disaggregate the invoice discounting industry and paves the way to providing access to a much wider range of funders and beneficiaries, providing a platform that can truly scale globally.”
Tradeteq was launched in 2018 and lets originators package trade finance products into standardized investments, which can be bought and sold via private networks and settled as common fixed income products, the report stated.
The business has primarily worked on the bank to capital market channel, which has focused on the repackaging of open account instruments into fungible notes, which are then sold to entities like fund managers, insurers and investors, according to the report.
In other NFT news, a U.K. man is likely going to be the first to own a Mastercard NFT.
Read more: UK Cardholder Could Own First-Ever Mastercard NFT
The credit card company announced Sept. 16 that it was having a raffle for U.K. cardholders to win the NFT, which was created in partnership with José Mourinho, a professional soccer manager and former player.
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