Trade finance, essential for over $30 trillion in global commerce, suffers from slow and manual processes, with only 2% of bills of lading issued electronically. SMEs face significant barriers to financing because of fragmented systems and legal challenges. The global trade finance gap is estimated at $2.5 trillion, hindering SMEs' participation in global supply chains. Recent efforts by G7 countries to align legal statuses with electronic documentation aims to foster a shift towards digital bills of lading, supported by hybrid blockchain solutions such as the XDC Network, targeting 100% digital adoption by 2030.
Trade finance rarely makes headlines, yet it supports over $30 trillion in annual global commerce. The systems powering it are still slow and exclusionary.
SMEs are routinely denied financing due to fragmented infrastructure and face barriers in global commerce. Trade finance has a global gap of $2.5 trillion.
As of 2022, about 2% of all bills of lading were issued electronically, relying heavily on couriers and manual processes, fueling the trade finance gap.
Legal barriers impede digitization; however, G7 countries align with UNCITRAL’s MLETR, moving toward digital bills of lading with equal enforceability by 2030.
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