In September, XDC Network and Tradeteq launched what they described as the world’s first trade finance-based NFT transaction with invoice finance company Accelerated Payments as the asset originator.
As a unique unit of data or token stored on the blockchain, a non-fungible token can be used to represent any assets, including trade finance assets. To ensure a secure migration of these assets from an off-chain product to an on-chain token, Tradeteq and XinFin partnered with a traditional off-chain asset custodian as well as a digital-asset custodian.
“A token-based, non-fungible financial instrument focuses on ownership and contract specifics, and transforms paper-based contracts typically held by relevant investors incorporating expensive legal frameworks/compartments with no version control – or dubious signature pages – into a cloud-based digital blockchain format that is verifiable, tamper proof, shareable and cost effective,” says Ian Duffy, chief executive of Accelerated Payments.
An NFT can be embedded into a smart contract, giving that transaction a specific authentication or proof of being genuine, observes Rob Gaskell, founder and partner at Appold, an advisory and investment company in the digital assets sector.
“Many
