Business to Business Payment and Financial Supply Chain Network built on blockchain

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2 2 TradeFin Network is a Business to Business Payment and Financial Supply Chain Network built on blockchain. Similar to how Visa and Mastercard make B2C payments and credits ubiquitous, secure and frictionless, TradeFin s mission is to make B2B payments and credits secure and without operational and transactional inefficiencies. The network connects corporations, its supply chain, and multiple financiers. Corporations apart from making payments efficiently and providing liquidity to their supply chains are also able to have a much deeper visibility into the supply chain. The supplier on the network benefit from low-cost financing and operational efficiencies. The financiers on the network get access to a new asset class with reduced risk - creating a win-win situation for everyone. TradeFin Network utilizes a hybrid blockchain architecture that allows participants to maintain control over proprietary information and at the same time allows them to utilize the public blockchain for trust, immutability and settlement. By combining payments and financing on the same chain, TradeFin can ensure that the fraud that is so prevalent in this industry is completely eliminated. Participants on TradeFin network can utilize a stable coin (TradeFin Payment Token) that is pegged to fiat currency.

3 3 TradeFin targets multi-trillion-dollar opportunities in B2B payments and supply chain financing. These markets are highly inefficient and ripe for disruption. Every year, businesses spend over US$900 billion in transaction fees and lost float income to banks and other intermediaries to move money between trading partners. At any given time, there is over US$40 trillion tied up in supply chain processes, as suppliers and sellers must typically wait days to get paid on their invoices. The liquidity crunch is much more acute in emerging markets, where the typical wait time balloons to days. Further, the financing cost can run as high as 36-54% annually. The trillions of dollars locked in supply chain processes represent dead capital (a term employed by Peruvian economist Hernando de Soto) which consists of high quality assets - accounts receivable - that cannot be sold or financed by small businesses. TradeFin s mission is to unlock access to capital for millions of small global businesses, particularly in the developing world, through innovative use of blockchain technologies in supply chain finance. A. leading to unnecessarily high transaction costs. Banks lack the incentives to deliver real time, instant payment settlements because they garner more float income the longer funds slated for transactions are held in the bank s accounts. Additionally, each party needs to reconcile transaction ledgers separately, often an arduous, manual and error-prone process. B. Lack of a common, immutable, validated and trusted record of transactions, documentation and payments. Currently, each participant in the supply chain maintains separate, proprietary records that cannot be selectively shared. Businesses have no way to see the complete truth without having visibility into transaction ledgers across many different parties in the supply chain. The lack of common records contributes of lack of visibility across both physical and financial supply chains, elevating risk of frauds such as double financing and increasing financing costs for smaller suppliers. C. Operational intensity creates obstacles for financiers to engage in supply chain financing. There are multiple processes requiring manual involvement: these include ensuring documents are genuine, securing transaction confirmations from all parties involved, and verifying that buyers and their banks accurately remit payment for invoices assigned to a financier. The time, cost and complexity of these processes prevents banks and other financiers from benefiting from supply chain finance opportunities. A. Multiple banks and intermediaries are involved in B2B Payments in the supply chain,

4 4 TradeFin Network solves these problem with a decentralized network, architected for speed, scalability and security on hybrid blockchain that has public and private/permissioned states, designed to integrate with existing systems and business process. We highlight benefits for network participants below. Corporations Reduction in payments transaction fees Better Payment Reconciliation Improved cash flow Deeper Supply Chain Visibility Deeper Tier Supply Chain Visibility Funders Reduced Operational Cost Reduced payment risk Attractive asset pools Supplier/Channel Partner Improved cash flow Lower Financing costs Free e-invoicing software Working Capital Optimized for all parties A. Hybrid - public and private - blockchain model. TradeFin combines the Stellar public blockchain and the Hyperledger private/permissioned blockchain. The Stellar blockchain will settle payments and financing transactions, with proprietary or sensitive details cryptographically hidden. The Hyperledger blockchain will securely store proprietary or sensitive trade related data, accessible solely by those with specifically permissioned access. This structure enables businesses to securely store their proprietary trade, relationship and business data while leveraging the trust, immutability, instant payment settlement and financing facilitation that the public blockchain provides. B. Payments between businesses on TradeFin Network will be powered by a Stable Coin - TradeFin Payment Token (TPT). TPT is a payment token pegged to fiat currency (also known as a stable coin ). TPT will be backed by collateral in fiat currency and there will be 1:1 relationship between TPT and fiat. Business will have the option use TPT to make and receive payments. By using TPT, businesses will radically lower the bank transaction fees they are charged, and benefit from potential float income lost to banks. TradeFin will work with multiple banks who will act as anchors and will also have its own exchange TradeEx provide which will provide a fiat currency on-ramp and off-ramp for participants.

5 5 C. Deeper Supply Chain Visibility and Financing By utilizing a permissioned blockchain, TradeFin Network allows corporations to onboard all tiers of their supply chain. Supplier s are assured that they remain in control of their information. Suppliers benefit from lower payment cost and better financing rates. Corporations benefit from better supply chain visibility. TradeFin will ensure that participants have visibility into transactions, payments and receivables, financing instruments and risk profiles across the supply chain. This reduces the risk of fraud including double financing, accelerates business velocity and increases liquidity across the financial supply chain. D. Smart contracts for payment, settlement, chargeback, rebates and various forms of supply chain financing. These will address invoice factoring, dynamic discounting, preshipment financing, post-shipment financing, receivables financing and other capabilities. Multiple smart contracts will address the complexities of global trade, where documents encompass multiple jurisdictions, laws and contractual conditions. TradeFin will create a Smart Contract Builder to enable users without coding skills to easily build smart contracts for financing and payment. Eventually a DAPP (or Distributed Application) Marketplace will empower the community to create and publish apps that run on the TradeFin Network. The team behind TradeFin has acquired a deep understanding of industry dynamics, requirements and technologies; in the past 18 months, they successfully built a supply chain finance platform in India and the US. Through building the platform, the team has cultivated deep expertise into the intricacies of supply chain and trade finance. From firsthand experience building the platform, the team has arrived at the conviction that the best way to solve these challenges is via a platform combining both public and private blockchain technologies. The team has extensive experience in trade finance, technology and investing and with studies at Wharton and IIT and has worked at SAP, Fidelity, MakeMyTrip, Deloitte, Bank of America. This whitepaper provides a comprehensive overview of TradeFin s blockchain and network, benefits to each of the participating parties, high level technical architecture, the developers involved in the project, its current state, roadmap and milestones. TradeFin has raised an angel round from investors including: the Head/MD of Google in India, founder of Turner Investments and principals at Millennium Capital Management, Balyasny Asset Management, Bernstein, Lazard, ICICI, Bank of America and Baron Capital