XinFin’s XDC Network – the First Blockchain Company to Join the Global TFD Initiative

The TFD Initiative was established by ITFA to boost automation and transparency in trade asset and risk distribution. Members include major global financial institutions and leading service providers such as ABN AMRO, Santander Asset Management, ING Bank, SMBC, ANZ, Commonwealth Bank of Australia, Texel Group, NN Investment Partners and more, recognises the vital role blockchain will play in shaping the future of the trade finance sector, which has already been successfully implemented in other areas of finance.

To establish trade as an investment class, TFD Initiative is working to define new technology based market practices and transaction data specifications, with the goal of increasing the accessibility and transparency of trade flows. This will create a more robust trade finance ecosystem where banks can reach new types of funders, like institutional investors and family offices.

Chris Southworth, Secretary General, ICC United Kingdom who is an observer on TFD Initiative said: “Trade finance is a compelling asset class for institutional investors. Making trade finance more accessible for non-bank investors is of paramount importance if we are going to drive the economic recovery from Covid and fill the USD 3-5 trillion SME trade finance gap. Innovative technology driven solutions like the TFD Initiative are a critical part of the solution to providing more liquidity into the market.”

“Emerging technologies such as distributed ledgers are being promoted as a way to create smart contracts: computer programs which run automatically, in whole or in part, without the need for human intervention,” says Sarah Green, Law Commissioner for England and Wales. “Smart contracts are expected to increase efficiency and certainty in business and reduce the need for contracting parties to have to trust each other; the trust resides instead in the code. To ensure that the jurisdiction of England and Wales remains a competitive choice for business, there is a compelling case for reviewing the current legal framework in England and Wales to ensure that it facilitates the use of smart contracts.”

XDC Network, a network utility  providing smart contract technology to produce cryptographic tokens, has been  selected to join the TFD Initiative by fintech veteran André Casterman, whose impressive track record includes over 20 years at SWIFT, leading various technology innovations in inter-bank payments, corporate payments, corporate treasury, and trade finance. Casterman is responsible for spearheading the TFD Initiative.

In welcoming the XDC Network, Casterman, who is also Chair of the Fintech Committee at ITFA, said: “TFD Initiative provides the most comprehensive set of trade distribution capabilities. We welcome XinFin’s XDC Network to TFD Initiative as this enables us to bridge the US$19 trillion trade finance asset class with any type of funder through tokenisation and digital assets.”