Managing Risk in Global Trade

Global trade is made up of complex relationships and behaviors between importers and exporters. To manage risk effectively and efficiently, you need to understand the context of their businesses, ownership structures, geographies, and where they sit in broader supply chains.

In XDC Trade Network borrowers and lenders will be required to be on-boarded on a regulated digital custodian for all the financial transactions. Our initial digital custodian in Singapore will be Propine who has a stringent on-boarding process. For more please visit https://propine.com/

We are looking at working with various partners using the best of technologies like Machine learning, Artificial Intelligence, Cloud technology, and various data oracles to facilitate both real-time identification of suspicious activity as well as post-event transaction monitoring, TBML, creating actionable client profiles for fast, effective data-driven investigations.

Common types of TBML include over-invoicing, trade description fraud, phantom shipments, acquisition and sale of intangibles, and the concealed transportation of cash using trading operations. The majority of global trade is conducted under "open account" terms, with buyers and sellers agreeing to contract terms directly and delivering goods to the buyer after payment goes through a liquidity provider who generally does not have the visibility on these transactions to carry out any checks other than standard transaction monitoring. In fact, most parties involved have little visibility.

Maturing and emerging technologies provide new ways to address the TBML challenge by increasing transparency, simplifying processes, and significantly reducing costs. Combining these technologies can augment existing processes, while collaborative platform technologies like enterprise blockchain and confidential computing provide a secure foundation for new applications that enable trusted, multi-firm information exchange and audit. Blockchain can provide the basis for trust, transparency, and automation—fundamental building blocks which other emerging technologies can leverage. It offers the ability to mutualize the cost of implementing TBML solutions within a business network while allowing parties to remain in control of the data.