Own the REAL ECONOMY

Each TRADA Token has a target return of 5% p.a. plus an amount payable in XDC equal to USD 0.00125 per calendar quarter. This is not a guaranteed return and TRADA Token holders may receive more or less. For further information please see the risk factors section in the prospectus.

The availability of trade finance is essential to trade, growth, and prosperity. More and more businesses find it hard, however, to access the funding they need. Banks continue to reduce capital available to support trade. That’s where TRADA Token aims to make a difference: Investments into TRADA Token will be used to bring much-needed funding to businesses around the globe.

Trade finance has traditionally been the preserve of major banks. As regulatory pressure increases and demand for finance grows, more trade finance is needed than banks can provide. A recent Asian Development Bank report estimates that global demand for trade finance exceeds supply by US$1.7 trillion. The WTO expects this gap to widen to US$2.5 trillion by 2025.

Trade finance is being recognized as a compelling private debt opportunity for institutional investors. By offering funding to real-world businesses and supporting the manufacture and shipping of goods, investors can get access to the real economy. This funding is, usually, collateralized by the goods that are being financed by it or credit insured. No wonder, then, that institutional investors increasingly see trade finance and its stable uncorrelated returns as a valuable short-duration diversifier within their secured finance portfolios and as an attractive absolute return strategy.

Trade finance can provide unique, short-dated, uncorrelated cash flows to institutional investors. In a low, or even negative, interest rate environment trade finance offers investors the opportunity to steadily earn attractive risk-adjusted positive returns. TRADA Token will allow everyone to access this historically low-risk and recession-proof asset class.

Trade finance is a rapidly evolving opportunity. Many institutional investors have moved into private lending opportunities to counteract the duration extension and yield compression in investment grade credit. As a result, the private lending space has become crowded and yields are being significantly squeezed. Trade finance can offer an attractive alternative and act as a portfolio diversifier by providing unique, short-dated, uncorrelated cash flows. Trade finance can provide investors with access to private debt without the long lock-up periods typical for loan-based products.

Trade finance potentially offers better spreads and shorter duration than comparable fixed income products. Short duration means that, unlike corporate bonds, trade finance obligations generally do not lose value because of interest rate rises. The yields on new trade finance instruments usually rise in a sustained inflation environment, giving some protection to investors. So trade finance may remain an attractive alternative investment and portfolio diversification tool in a rising rates/inflationary environment as well as in a low rates environment.

TRADA Token is being issued in Liechtenstein based on a securities prospectus approved by the Liechtenstein financial regulator, the Finanzmarktaufsicht (FMA). Liechtenstein benefits from a S&P AAA country rating and is a member of the European FreeTrade Association and the Council of Europe. The country is known for its robust legal framework and effective and strict measures to combat money laundering as well as its rigorous KYC requirements.

Tokens dramatically increase liquidity and open the market to a much broader range of investors, without sacrificing regulatory compliance. Security tokens offered by a Liechtenstein based company such as XDCTEQ are a financial instrument, and they are being offered in a highly compliant format and within an extremely strong regulatory environment.

Trade finance is generally viewed as a low-risk asset class, especially when compared to other traditional asset classes. According to the 2021 International Chamber of Commerce (ICC) Banking Commission’s trade register report, default rates for trade finance are as low as 0.05%. Risk is fundamental to the investment process and there is no guarantee or representation regarding returns of TRADA Token; for details please see the risk section of the prospectus.

Trade finance is valued by investors for producing comparatively high risk-adjusted returns, while showing negative correlation to other asset classes. Goods continue to be produced, processed, and consumed even during times of market disruption. Financing the flow of these goods, therefore, allows for returns being generated throughout the economic cycle. Difficult market cycles or tighter credit environments could even be beneficial, as financiers may be able to enforce better covenants and security packages as well as increased return targets.

TRADA Token has been developed by a team of capital markets, technology, and blockchain experts. Built on the XDC Network, the TRADA Token provides scalable access to trade finance assets in a secure manner that is decentralized, fast, and cost-effective. Powered by Tradeteq and the XDC Network, TRADA Token unlocks the value - presently inaccessible to private investors - inherent in trade assets. Finally, since a broad universe of investors will be able to invest in trade finance, there exists an enormous blue-ocean opportunity for XDCTEQ, which is founded on real value innovation.

Trade finance is commonly defined as the financing that is required to enable the flow of goods and services around the world. Trade finance has been enabling commerce since the times of the ancient Venetian merchants. Trade finance affects everyone, daily. Almost all goods that we consume have, in one form or another, come into contact with trade finance.