Traxia is a blockchain solution for trade finance. Currently built on the Ethereum blockchain, there are plans in place to move Traxia to the Cardano blockchain. It defines itself as the solution to the inefficiencies of current financial and banking institutions. Those inefficiencies include the lack of trust between banks, limited transparency, limited cash liquidity, and lots of paperwork required. Described as a decentralized global trade finance ecosystem, the Traxia platform will allow consumers and businesses to exchange invoices as short-term assets. These assets can act as collateral to provide finance, liquidity, and backing for their specified projects.
The concept is to allow consumers and providers a more effective platform to facilitate trade agreements. The process proposed by the team will progress as such:
1. Seller uploads an invoice.
2. Buyer approves it with their private key.
3. Issuing Provider writes the agreement into a smart contract.
4. Liquidity Provider distributes cash liquidity.
5. Listing Provider will manage the marketplace.
6. Investors can trade the newly created digital asset.
Traxia is meant to simplify the finance process of international imports and exports. Traditionally, banks offer products to help with the cash flow needed in the import export business. However, this process adds a significant amount of red tape. These products are usually linked to underlying trade transactions. These products usually have short terms linked to when the products will be received, somewhere between 30-90 days, sometimes more. The banks act as financial intermediaries between the two contract holders. These products are used by shippers as the working capital necessary to produce the product in question. Traxia uses smart contracts to perform many of the tasks that banks and creditors would normally carry out.
Shown below is Traxia’s platform, built to reform the industry’s shortcomings.
A visualization of Traxia’s platform.
Traxia will be established as an open and decentralized ecosystem to improve trade and finance globally. Corporates can create smart contracts to automate and execute digital commands to trigger payments and receipts in real time as goods and consumers move through the supply chain.
Assets created on the platform are defined as digital representation of a real trade assets, and therefore an International Security Identification Number (ISIN) will not be required. Furthermore, the asset(s) are signed by the Supplier/Buyer and recorded on the blockchain, adding an additional value of trust and ease of use.
According to the whitepaper, Traxia has already established a real use case with their design using LiqEase Ltd as the Listing Provider, Porsche as the Buyer, mediaman and Vok Damns as Sellers, and a corporate investor as the Liquidity Provider.
LiqEase is the first successful proof of concept for Traxia. It is also service provider for the platform and will act as both the Issuing and Listing Provider. In fact, the company already has a Web interface that enable users to upload invoices.
The two companies Liqease and Traxia were the first investments of Cardano through their investment arm, Emurgo, and have worked together since conception. Due to their close relationship, it can be confusing to recognize the two as separate organizations, but Traxia is a non-profit under the laws of Switzerland, and LiqEase operates as a for-profit company.
The collaborative partnership is meant to provide a solution to the lack of trust towards the current industry, particularly the issues of non-standardized processes and dependencies on centralized institutions.
Shown below is a simplified visualization of the working relationship between LiqEase and Traxia, as provided in the whitepaper.
Traxia is traded on Kucoin, Hotbit, Gate.io, and Gatecoin. Kucoin accounts for 80% of the trade volume, with 44.26% being traded on the ETH pair. It has a 24-hour volume of $6,770,350 USD, a market cap of 28.9 million, a circulating supply of 650 million, and a total supply of 1 billion.
Co-Founder & CEO
Tobias has a degree in East Asian Studies with a focus on Business Administration from Tuebingen University. He has more than 7 years of experience in Fintech and has served in various leadership positions for a good part of that time.
Co-Founder & Product Development
Florian has a Master’s in management from Vorarlberg University of Applied Sciences. He has approximately 10 years of management experience and 3 years of experience in finance.
Jean Michel Lied Lied
Jean has a Master’s in Computer Science from the European Institute of Technology. He has 8.5 years of programming experience and acts as the CTO of the company he founded in 2012, YBC.