This collaboration aims to revolutionize trade finance and supply chain asset management, addressing financing gaps and improving efficiency in global supply chain operations, the companies said in a Thursday (Aug. 24) press release.
GUUD is a global provider of trade technology platforms and supply chain financing solutions, while Intraco is a lead arranger in tokenized short-term corporate commercial papers and an experienced trader in plastic resins, according to the press release. By combining their expertise, both companies seek to offer market participants a more efficient and transparent way to access trade finance assets, mitigate risks, and improve liquidity.
The TradeTok will be issued to accredited investors on SDAX, and the proceeds raised will be used to fund trade finance and supply chain assets, the release said. GUUD’s asset-backed financing (ABF) solution plays a role in supporting businesses’ financial stability and growth by facilitating risk mitigation within the supply chain.
Intraco will facilitate the tokenization of GUUD’s supply chain financed assets and leverage SDAX’s platform with its distribution capabilities, per the release. This collaboration will bring new liquidity pools to augment GUUD’s supply chain financing model.
Eldwin Wong, CEO of GUUD Finance, said in the release that this partnership will further the evolution of trade finance and supply chain financing. He said, “It offers market participants a more efficient and transparent way to access trade finance assets while mitigating risks and improving liquidity in the marketplace.”
Mak Lye Mun, executive chairman of Intraco Limited, added, “By leveraging the power of technology and the extensive knowledge and network of Intraco, we aim to unlock new opportunities for businesses and investors in the global trade landscape.”
There is a direct correlation between the availability of trade finance and the ability for a small business to grow, Desmond Loh, head of supply chain financing at GUUD, told PYMNTS in an interview posted in July 2021. Trade finance promotes cash flow health and the flexibility for smaller firms to choose their customers, Loh said at the time.