Eximchain is a blockchain-based payment and finance platform that enables importers and exporters to transact with the security of a Letter of Credit at minimal cost, and ultimately obtain financing from the global credit markets.
Small and medium-sized enterprises are the global economy’s backbone, accounting for 46% of global trade. Yet, SMEs around the world struggle to get access to reasonably-priced trade finance services. Using blockchain technology, Eximchain enables SMEs to transact with each other and potential lenders in a simple and secure way. First, our system aims to eliminate $39bn in “trust” (Letter of Credit) fees annually and provide financial inclusion to SMEs, the engine of global growth. $26bn of these L/C fees are incurred by traders in Asia and Africa alone, where demand for L/Cs is high but banking services are sparse. Second, using data produced when importers and exporters transact with each other on our platform, Eximchain will build credit history for unbanked SMEs and will establish a lending marketplace to originate trade finance loans. The International Trade Center (ITC) and International Finance Corporation (IFC) approximate that the SME business financing gap is in developing countries totals more than $2tn.
- Spring 2016
- Harvard Law School