Tradeteq , a technology provider for securitisation-as-a-service and bank asset distribution, has expanded into private debt and real assets to help banks
Tradeteq , a technology provider for securitisation-as-a-service and bank asset distribution, has expanded into private debt and real assets to help banks. Tradeteq’s products include ACCESS LITE, a marketplace for buy-side investors to participate in the secondary trading of trade finance assets, and DISTRIBUTE, which automates distribution workflows.
Participants can now leverage these platforms for a wider range of private debt and real assets. Tradeteq’s workflow automation and securitisation-as-a-service transform private debt into tradable financial instruments to enable wider investor uptake. Real-time processing and standardised repackaging of assets reduce friction costs and result in higher investment yields.
Tradeteq issues these instruments to investors off-chain, as traditional capital markets products and notes, and on-chain, as regulated security tokens using distributed ledger technologies. Since 2016, Tradeteq has helped banks tackle the USD 1. 7 trillion trade finance gap – the shortfall in global lending – by securitising and distributing their trade finance assets to investors.
Its primary issuance platform will now become available for additional forms of private debt. Trade finance There is around USD 3. 5 trillion of private debt and real assets under management globally but these instruments are not easy to transfer or trade due to limited investor access and cost barriers.
For asset sellers, such as banks, non-bank originators and lending platforms, setting up the infrastructure can be a lengthy and expensive process. Traditional asset managers repackage these instruments into funds, but investors often face high operational costs due to manual workflows. Trade finance assets, which are based on the flow of tangible goods around the world, traditionally carry little risk and yet promise investors a steady stream of stable rewards.
Trade finance is at present scarcely even investible due to the high barriers of entry, including poor visibility for beneficiaries, insufficient levels of collateral and complex regulatory, and supply chain procedures. Earlier in 2022, Tradeteq began its process of ramping up on-chain transaction volume of regulated, real-world assets and extends access to the trade finance market to both retail and institutional investors. .
Jan 10, 2023 12:51
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