Design Phase

Trade

Document-anchored settlement for trade finance instruments. Maturity-aware netting groups obligations by settlement date, enabling compression across letters of credit, bills of lading, and documentary collections.

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Settlement meets trade finance

Trade finance instruments settle on different timelines — 30, 60, 90, 180 days. Current netting systems ignore maturity dates, forcing separate settlement for each instrument. Trade introduces maturity-aware netting: obligations are grouped by settlement date and compressed together, regardless of the underlying instrument type.

What Trade will deliver

01

Document anchoring

On-chain registration of trade finance documents — letters of credit, bills of lading, invoices, documentary collections. Each obligation links to its originating document hash.

02

Maturity-aware netting

Obligations grouped by maturity bucket (T+30, T+60, T+90, T+180). Multilateral netting applied within each bucket, compressing obligations that settle on the same date.

03

LC lifecycle tracking

Full letter of credit lifecycle on-chain — issuance, amendment, presentation, acceptance, settlement. Status transitions enforced at the precompile level with multi-party authorisation.

04

Cross-maturity offsetting

Where counterparties have opposing obligations across maturity buckets, Trade identifies early settlement opportunities that reduce both parties' exposure without requiring additional liquidity.

05

Document verification

Cryptographic verification of trade documents against registered hashes. Prevents duplicate financing and ensures document integrity throughout the settlement lifecycle.

06

Multi-bank LC participation

Support for syndicated letters of credit with multiple issuing and confirming banks. Netting across participants in a single LC reduces interbank settlement obligations.

Addressable Market
$8T+

Global trade finance market. Letters of credit alone account for over $2.8 trillion annually. Documentary collections, guarantees, and supply chain finance make up the balance.

Supported trade finance instruments

Letters of credit

Full lifecycle support for irrevocable documentary LCs, standby LCs, and transferable LCs. Multi-bank participation with netting across all parties.

  • Issuance, amendment, presentation, acceptance
  • Multi-bank syndicated LC support
  • Maturity bucketing for deferred payment LCs

Documentary collections

Documents against payment (D/P) and documents against acceptance (D/A) with cryptographic document verification and on-chain status tracking.

  • Document hash anchoring and verification
  • Collection instruction tracking
  • Settlement date alignment with netting windows

Oracle-determined FX rates

All Settlement Computer products use FX rate feeds from AFXO — an institutional-grade FX oracle delivering deterministic rate feeds across global currency pairs. Trade finance obligations involving cross-currency settlement are priced at the oracle rate at maturity window close.

Patent protected

PROV-003
64/013,031
Trade — Maturity-Aware + Temporal Netting
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