Zoth Expands Trade Finance Facility to Southeast Asia via TradeFinex on XDC Network

Zoth, a real-world assets protocol, has scaled its on-chain trade finance facility by tokenizing receivables in Southeast Asia using TradeFinex on the XDC Network. This collaboration expands Zoth's vision across the Middle East, LATAM, and Southeast Asia, creating a liquidity infrastructure to address global trade challenges. The deal, funded with the Fathom Dollar $FXD, demonstrates the efficiency of blockchain-based financing for real-world challenges, with plans to expand financing to USD10 million.

Zoth Expands Trade Finance Facility in Southeast Asia Using TradeFinex on the XDC Network

Singapore, March 26, 2024 - Zoth, a pioneering protocol bridging traditional finance with on-chain finance, has successfully scaled its on-chain trade finance facility by tokenizing receivables in Southeast Asia. Leveraging the capabilities of TradeFinex, a decentralized application (dApp) within the XDC Network, Zoth has expanded its global trade finance operations to encompass the Middle East, Latin America, and Southeast Asia. This groundbreaking initiative aims to establish a comprehensive liquidity infrastructure to address global trade challenges.

Empowering Global Trade with Blockchain-Based Finance

The tokenization of receivables using TradeFinex's open-source smart contract standards marks a significant milestone for Zoth. Funded by Zoth's LP Ecosystem, utilizing the Fathom Dollar ($FXD), this innovative facility provides liquidity to the Singapore subsidiary of a global e-learning leader, with a government entity of Singapore serving as the counterparty. The transaction was executed on the XDC Network blockchain, with TradeFinex serving as one of the liquidity providers for the deal. This successful transaction has secured initial funding of $FXD 350,000, with expansion plans to raise USD 10 million through Zoth, demonstrating its commitment to driving trade finance in Southeast Asia.

Zoth's Technology Revolutionizes Trade Finance

The success of this deal underscores the efficiency and transformative power of blockchain-based financing for real-world challenges. Zoth's proprietary technology enables the seamless transformation of paper-based invoices into electronic ones, followed by fractionalization and tokenization. This innovative approach provides investors with access to a new asset class and facilitates the provision of capital against the fractionalized electronic invoices for a 120-day period.

Key Participants Driving Innovation

The pilot pool involved a consortium of industry leaders collaborating to drive innovation in trade finance. Zoth acted as the Loan Originator and Tokenization Platform, TradeFinex provided open-source smart contract standards, Fathom served as the FXD Stablecoin Issuer, and XDC Network offered its carbon-neutral blockchain platform.

XDC Network and TradeFinex Facilitate Seamless Execution

XDC Network's enterprise-grade, carbon-neutral blockchain infrastructure with near-zero gas fees and interoperability ensures secure and efficient trade finance, payments, and RWA tokenization. TradeFinex's blockchain-based P2P marketplace for trade financing offers open-source smart contract standards for RWA-focused private credit solutions.

Collaboration for a Global Liquidity Infrastructure

"Our continued collaboration with TradeFinex and XDC Network has resulted in another successful deal," said Pritam Dutta, Founder of Zoth. "We are building the first liquidity infrastructure focused on simplifying global finance and addressing the credit gap in emerging markets."

Chen Shanlong, Marketing and Partnerships Lead of XDC Network and TradeFinex, added, "This deal aligns with XDC Network's focus on RWA and TradeFinex's commitment to supporting startups and reducing the funding gap for underserved SMEs."

About Zoth

Zoth is an ecosystem bridging liquidity between traditional finance and on-chain finance, facilitating the flow of assets and capital between these sectors. Its flagship product, Zoth-Fi, provides an institutional-grade fixed income marketplace, offering investor access to premium fixed-income assets through stablecoins. Zoth encompasses a wide range of asset classes, including trade finance receivables, sovereign government bonds, and corporate credit.

About TradeFinex

TradeFinex is an open TradeFi protocol and marketplace for RWA pools. It leverages open-source smart contract technology for trade asset pooling, aggregation, and distribution to alternative asset investors. Built on the XDC Network, TradeFinex provides a secure, transparent, and efficient mechanism for trade finance transactions.

About XDC Network

XDC Network is an open-source, carbon-neutral, EVM-compatible, Layer 1 blockchain. Its XDPoS consensus mechanism enables 2-second transaction times, near-zero gas expenses, and over 2000 TPS. XDC Network powers secure, scalable, and highly efficient blockchain use cases, including trade finance, payments, and RWA tokenization.