CargoX Platform: Boosting Trade Finance Digitalisation
The CargoX Platform for Blockchain Document Transfer (BDT) was used in three test transfers of letters of credit on the digital trade finance network Contour, conducted by the European Bank for Reconstruction and Development (EBRD) and QNB ALAHLI, one of the largest commercial banks in Egypt.
The EBRD has designated digitalization as one of three priorities for the next five-year framework.
Processing large amounts of paper-based documents, as required by a letter of credit in global trade, is slow, cumbersome, and can result in delays. The performance of the exporter and importer is tied to the documents requested in a letter of credit.
The payment is transferred after the buyer’s bank requests the document from the seller and verifies that the submitted documents are in compliance with the documentary credit terms set by the buyer, and the rules of the letter of credit.
This can include a commercial invoice, a bill of lading, a packing list, a certificate of origin, an inspection certificate, an insurance certificate, a health certificate or a phytosanitary certificate, a consular invoice, a draft or bill of exchange, and other documents.
Carl Wegner, CEO, Contour, said: “Transforming trade finance can’t be achieved by a single company acting by itself – collaboration is central to building a trade finance network that is truly global. Bills of lading can be a challenge for digital transformation due to their complex nature.
"That is why it is a key focus for our partnerships to streamline this common pain point in collaboration with CargoX. The tests conducted are important milestones towards facilitating the emergence of fully digital trade finance for all participants in global trade.”
Stefan Kukman, CEO, CargoX, said: ”CargoX offers a reliable, immutable, confidential, and at the same time transparent blockchain-based solution for transferring and presenting trade documents with the highest level of security in global trade.
"We are convinced that global trade will embrace the digitalization opportunities at hand to streamline document processing, avoid delays, and improve visibility in document processing.
"We are working towards taking the burden of sending paper around the globe off the shoulders of every major player in global business.”
CargoX has been shortlisted for TLME's Innovation Awards 2022 in the category MOST INNOVATIVE COMPANY – TECHNOLOGY, where it competes among DHL, Gaussin, DP World, IQ Robotics, AD Ports Group, and other companies in different categories.