Imagine a bridge that could only be crossed from one side. People on the opposite bank of the river can’t cross the bridge and don’t get to experience any more mobility across the river than they ever had. So what was the point of building the bridge? Even if it brings short-term benefits to people from one side of the river, it will likely be torn down in frustration.
There are several different types of stakeholders that are part of the trade finance ecosystem and Envoy aims to connect them all and bring the advantages of new technology to each party involved. Buyers, sellers, and financiers are the broadest terms that can be used to describe these parties and within each of these categories are various kinds of stakeholders, corporations and more.
Envoy is changing traditional trade finance by introducing blockchain technology into the mix. The goal is the digitise the entire process, removing all the paperweight from the ecosystem and allowing multiple financiers to fund the same contract which in turn gives greater opportunities for more businesses to enjoy the benefits of reduced risk that trade finance has to offer. The implications for buyers, sellers and financiers are great.
Stakeholder financiers
Stakeholders represent a broad spectrum of trading budgets to utilise Envoy and pool their resources to fulfill invoices. Envoy increases transparency through blockchain and lowers the total required a cost to participate through partial funding of contracts.
Envoy provides a compelling business model for institutional financiers by creating an enterprise-ready platform that is trustworthy and scalable. The platform will be made robust enough for institution-grade financing by allowing financiers to mitigate risks through partial contract funding and proper risk assessment using the Envoy Ensure community rating system.
Institutional third-party financiers who have a tokenised fund will be able to plugin using the Engage gateway which provides even more streamlined automation and compatibility — a completely unique opportunity for the trade finance ecosystem.
Corporate clients, retailers, and distributors
Whether a buyer or seller, Envoy’s platform facilitates trade financing by unlocking liquidity that would otherwise be unavailable. Once contract terms are agreed upon between buyers and sellers, the contract can be listed on the platform’s marketplace for funding.
Envoy also provides the required transparency in the invoice process which leads to further assurances and accountability. Due to the lowered administrative costs of the digitised processes, all of these factors combined create a compelling framework for corporate clients, retailers, and distributors alike.
So, whatever role you’ve found yourself in trade finance, Envoy has the solution.
For live conversations and updates join our Telegram group!