Commodities finance has always been complex, often with low margins in cross-border scenarios. This has made it a specialist form of financing due to the many difficulties and risks involved in the underlying transactions. As a result, many inroads have already been made in the use of blockchain technologies that address a lack of trust between counterparties.
Peloton Blockchain technology allows a 'crowd-funding' approach to commodity trade financing. By allowing the issuance and trading of any transaction, underlying asset or derivative as a series of cryptographic tokens, the Peloton Blockchain Network provides a swaps mechanism for incremental funding and transfer of risk.
Securitizing a large transaction, such as commodity trade financing, reduces your balance sheet requirements while creating trading and investment opportunities for a large and liquid market.
Issue and trade portions of any transaction, asset or derivative as securities, tokens or lots.
Contact us to discuss the benefits for your business and to arrange a demonstration.