Tokenized Yield Generating Trade Finance Assets As Maker Collaterals

I’ve been part of MakerDAO community for some time now. Been Learning. Holding MKR and DAI.

Today was a Historic step in adding a Tokenized cash version coming from centralised entities (USDC) to enhance the liquidity collateral.

We have been working on tokenizing Trade Finance Assets through TradeFinex. Trade Finance Assets are over 15 Trillion in value globally. They run the show for basic human consumption. Even as Coronavirus outbreak started, the first thing that people resort to are stacking up supplies from supermarkets. Trade Finance Assets are usually buyer guaranteed (supermarkets are a great example) or confirmed payables and yield 4-9% annually. They are usually exempt from securities act unless there is a securitization that converts them into notes or fixed income bond like instruments.

I wanted to introduce TradeFinex to the MakerDAO community with the vision that some of the assets that are tokenized on TradeFinex can act as collaterals for DAI in the near future.

We are working with several Trade Banks to standardise the tokenization and distribution method for these assets.

Our team is working towards tokenizing about 100 Million of Trade Finance assets by Q2 and scaling it multiple X with Trade Banks (Origination Partners).

I’d love to connect with MakerDAO community in getting feedback on how we can effectively scale this and further enhance what MakerDAO has been doing and add healthy mainstream adoption.

One thing that still sucks except US is fiat on ramps for cryptos are pretty expensive or time consuming. can change that. TradeFinex network of Trade Banks can provide effective fiat on ramps.

An Article that explains:

Look forward to building this with community if we get enough support.