SBI Holdings is joining forces with UAE-based TradeFinex to establish a crypto venture in Japan. The aim is to catalyze the widespread adoption of their enterprise blockchain platform on the innovative XDC Network.
Empowering Trade Finance Through Joint Venture
SBI Holdings and TradeFinex are embarking on a journey to propel the adoption of the Ethereum Virtual Machine (EVM)-compatible enterprise blockchain, the XDC Network. The focus is squarely on driving trade finance adoption through a new joint venture in Japan.
TradeFinex, headquartered in the UAE, operates a decentralized platform on the XDC Network. It facilitates trade finance originators to seamlessly connect with various banks and lending institutions. Specializing in enterprise use cases, TradeFinex offers a suite of blockchain-based trade finance products. These include invoicing, letters of credit, purchase order finance, and supply chain finance.
Unveiling the XDC Network
The XDC Network stands out as an EVM-compatible layer-1 network with interoperable smart contracts. Described as a “highly optimized, bespoke fork” of Ethereum, it employs a delegated proof-of-stake (DPoS) mechanism. This approach ensures fast transaction times, minimal gas fees, and a high transaction-per-second capacity.
The XDC Network operates on its native XDC token, functioning as a reserve cryptocurrency for third-party decentralized applications (DApps). This versatile token serves various purposes, including DApp payment settlements, micropayments, transaction costs, and smart contract deployment and settlement.
TradeFinex’s Collaborations and Recognition
TradeFinex has garnered attention through collaborations with esteemed entities such as the World Trade Organization, the International Chamber of Commerce, and various government agencies. Their focus on leveraging blockchain to enhance the speed, transparency, costs, and traceability of trade finance has positioned them as a key player in the industry.
The joint venture aims to localize XDC Network information and documentation in Japan. Additionally, it seeks to introduce XDC tokens to local cryptocurrency exchanges and deploy cutting-edge trade finance solutions across the Asia-Pacific region.
Strategic Timing in the Evolving Japanese Crypto Landscape
This landmark collaboration coincides with recent reports from Japan indicating the government’s intent to allow startups to raise funds through cryptocurrency token issuance instead of traditional stock listings.
Moreover, Japan’s Financial Services Agency plans to amend its tax code related to cryptocurrencies in August 2023, signaling an active role in cryptocurrency regulation, potentially including exemptions from “unrealized gains” tax on cryptocurrencies.
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