DNI Initiative – Mercore completes first digital bill of exchange using ITFA’s dDOC and ePU

We are delighted and very proud to share further progress on the DNI Initiative.

Mercore, the global trade focused fintech group, today announced that it has executed a trade finance transaction utilising ITFA’s electronic payment undertaking (ePU) structure working with one of its SME clients, Abercore, a UK based sugar trader and advisory firm.

Mercore completed the financing leveraging ITFA’s ePU for digital bill of exchange text and leveraging its dDOC specifications, together with execution via Enigio’s trace:original solution. This is one of several digital trades which are, and will be, performed utilising contract law prior to the passing of the Electronic Trade Documents Bill in the UK Parliament and bringing into law the UK’s alternative to UNCITRAL Model Law on Electronic Transferable Records (MLETR).

Luca Galbiati, Director of Abercore added: “It has been a great pleasure to work with Mercore on the first ever ePU ‘digital bill of exchange’ transaction for the sugar industry globally. … Mercore’s impressive use of new digital technologies to deliver finance will allow us to offer an enhanced level of service to our customer base in Europe and the UK. Importantly, it will allow us to significantly reduce the time it takes to pay sugar producers as well as allowing us to offer delayed payment terms well beyond the point of delivery.”

Sean Edwards, Chair of the International Trade & Forfaiting Association said: “The use of the ITFA ePU by Mercore and their client, Abercore, demonstrates the scalability and commercial value of digital negotiable instruments. Just as importantly, and following the use of ePUs by a major UK high street bank, Mercore have shown their relevance to the SME market and how they can be used to finance UK trade flows now and into the future. As ITFA continues its campaign to open the trade finance market to new investors, I congratulate all involved for their vision and enterprise.

Consult the full PR here featuring Mercore, Abercore, ITFA, ICC UK, Enigio and Lloyds Bank.

The DNI Initiative is one of ITFA’s strategic market initiatives which has established the most specialised community of technology providers, law firms, financial institutions, and policy stakeholders committed to digitise trade flows as per UNCITRAL MLETR-compatible laws and ITFA’s dDOC interoperability specifications.

Reach out to André Casterman, Chair Fintech Committee, ITFA for enquiries on membership to ITFA’s DNI Initiative.

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