BlockPeer, XDC Trade Network and Noves collaborate on first-of-its-kind Web3 financing using tokenized Electronic Promissory Note
BlockPeer, XDC Trade Network and Noves have successfully completed a pioneering pilot financing transaction utilizing an electronic promissory note (ePN) based on the TradeTrust framework. This pilot transaction, executed with USDC stablecoin, represents a new frontier in Web3-native trade financing for businesses.
This pilot marks a significant milestone as the first-ever Web3 financing transaction for a US-based Noves, utilizing a tokenized ePN for financing. The transaction is also notable for its compliance with Delaware’s adoption of MLETR (Model Law on Electronic Transferable Records), aligning with international digital trade laws.
Key Pilot Transaction Overview:
- Noves created an electronic promissory note (ePN) on the BlockPeer Trade platform.
- Noves placed the ePN for financing on the XDC Trade Network, tokenizing the asset.
- XDC Trade Network liquidity providers financed the tokenized ePN using USDC stablecoin.
Parties Involved in the Pilot Transaction:
- BlockPeer Trade: A comprehensive platform enabling businesses to tokenize MLETR-compliant trade documents like electronic promissory notes, bills of lading, and invoices. BlockPeer empowered Noves to issue the ePN digitally.
- Noves: The US Delaware-based company specializing in human-readable blockchain data created the tokenized ePN.
- XDC Trade Network: A decentralized platform that facilitated liquidity for the ePN through its network of providers, executing the financing in USDC stablecoin.
- Yodaplus: A technology partner supporting XDC Trade Network.
Why This Pilot is Significant:
This pilot demonstrates how Web3-native businesses can now access fast, secure financing through tokenized trade assets, avoiding the hurdles of traditional financing methods. By utilizing tokenized ePNs under the TradeTrust framework, this transaction sets a precedent for compliance with global and Delaware digital trade laws (MLETR) and showcases the future of decentralized finance (DeFi) for businesses.
About Electronic Promissory Notes (ePN):
An electronic promissory note (ePN) is a digital equivalent of a traditional promissory note, which legally binds the borrower to repay a specified sum. These tokenized documents provide numerous benefits:
- Legal Compliance: Fully compliant with UNCITRAL MLETR and TradeTrust, enabling secure, cross-border recognition of electronic documents.
- Speed & Security: Tokenized ePNs offer instant execution and real-time visibility, significantly reducing processing time compared to traditional paper notes.
- Legal Entity Identifier (LEI): The ePN included a Legal Entity Identifier to identify the issuer and recipient, ensuring transparency and easy verification.
- DID (Decentralized Identity): The ePN uses DID:DNS method to verify the issuer’s identity in a decentralized, permissionless manner, further enhancing trust.
