SBI Holding and TradeFinex Collaborate on XDC Network Adoption for Blockchain-based Trade Finance in Japan
Summary:
SBI Holding and UAE-based TradeFinex collaborate to promote the adoption of XDC Network, an Ethereum-compatible enterprise blockchain, in Japan. The joint venture aims to facilitate trade finance solutions and distribute XDC tokens through local cryptocurrency exchanges. This follows Japan's intent to allow startups to issue tokens for fundraising and proposed changes to tax codes relating to cryptocurrencies.
In a new collaborative effort in Japan, SBI Holding and TradeFinex are planning to encourage the adoption of the enterprise blockchain, XDC Network, which is compatible with the Ethereum Virtual Machine (EVM). TradeFinex is a United Arab Emirates-based company that has built a decentralized platform on the XDC Network to allow trade finance originators to partner with a diverse assortment of banks and financing institutions. The company primarily offers blockchain-enabled trade finance services like invoicing, letters of credit, purchase order finance, and supply chain finance, with its main target being enterprise applications.
The XDC Network is an EVM-adaptable layer 1 network with smart contracts that can interoperate. The network is essentially a meticulously enhanced Ethereum fork that employs a Delegated Proof of Stake (XDPoS) system to ensure speedy transactions, minimal gas fees, and high transaction per second capacity.
The XDC protocol uses its intrinsic XDC token as a reserve cryptocurrency for third-party decentralized applications on the network. The token can be used for various purposes, such as decentralized application payment settlements, micropayment processing, transaction cost handling, and smart contract implementation and resolution.
TradeFinex has previously joined hands with the World Trade Organization, the International Chamber of Commerce, and several governmental bodies to explore the potential benefits of blockchain for enhancing the speed, transparency, cost-effectiveness, and traceability of trade finance. The World Trade Organization highlighted TradeFinex in a 2020 report as an operation that serves as both a permissioned and permissionless network. Back then, TradeFinex had multiple participants, including Validus, regulated by Singapore's Monetary Authority, Enigio, Ramco, The International Trade and Forfaiting Association, and WOA.
According to an announcement sent to Cointelegraph, the SBI Holding and TradeFinex joint venture aims to make XDC Network information and documents available in the Japanese language, distribute XDC tokens via local crypto exchanges, and implement trade finance solutions throughout the Asia-Pacific area.
This joint venture follows recent news from Japan that the country's government is considering allowing start-ups to secure funding by issuing cryptocurrency tokens instead of traditional stock listings. Further, Japan's Financial Services Agency has announced intentions to modify its tax code related to cryptocurrencies in August 2023, indicating a potentially more proactive stance on cryptocurrency regulation, possibly including exemptions from paying tax on "unrealized gains" from cryptocurrencies.
Published At
9/29/2023 1:06:13 PM
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