🌐 Web3 & Tokenization of Trade Documents

Transforming Trade Documents into Digital Assets

At FDP Connect™, we are enabling the future of cross-border trade by leveraging Web3 technologies, blockchain, and tokenization. In partnership with TradeTrust and the XDC ecosystem, our solution converts critical trade documents into secure, verifiable, and transferable digital tokens — bridging the gap between exporters, importers, and financial institutions.

The Tokenization Workflow (Step-by-Step)

The diagram below outlines how a traditional ExIm document (Export-Import document) is transformed into a TradeTrust-verifiable digital asset and allocated as an XRC-20 token for real-world utility:

  1. Document Generation

    • Exporter generates an ExIm trade document.

  2. Check Document Store

    • If a document store already exists, it’s reused.

    • Otherwise, a new document store is deployed.

  3. Wrapping the Document

    • The file is wrapped with:

      • Metadata

      • DNS-TXT location

      • Token Registry address (issuer identity)

      • Signature (Merkle root + target hash)

  4. Issuance on DNS-TXT Method

    • The wrapped file is published on the DNS-TXT method for authenticity and verification.

  5. Minting on Blockchain

    • The wrapped document is minted on the XDC network as an XRC-20 token, using:

      • Wallet address (holder/owner)

      • Merkle root (token ID)

      • Encrypted remarks

  6. TradeTrust Verification

    • The document is issued on TradeTrust with a document hash recorded on a smart contract.

    • Any stakeholder in the trade ecosystem can verify authenticity.

  7. Utility in Trade Finance & Payments

    • The XRC-20 token representing the document is allocated for:

      • Trade finance (collateral for credit/liquidity)

      • Cross-border remittance (potential for stablecoin-based transfers)

      • Seamless settlement between exporters, importers, and banks/FIs

  8. Final Output

    • A TradeTrust-verifiable digital document that is:

      • Secure

      • Immutable

      • Transferable

      • Instantly auditable

Utility of the Token in the XDC Ecosystem

The minted XRC-20 token is not just a digital placeholder — it provides real utility in global trade:

  • 🔑 Digital Proof of Ownership: Serves as a secure representation of transferable trade documents (e.g., Bill of Lading).

  • 🔗 Seamless Transferability: Instantly transfer ownership across stakeholders without intermediaries.

  • ⚖️ Smart Contract Integration: Automates compliance, payments, and trade finance through programmable contracts.

  • 📜 Transparent Audit Trail: Ensures complete compliance with an immutable on-chain record.

  • 🌍 Liquidity & Remittance: Enables access to trade finance, credit, and potential stablecoin-powered remittance for faster settlements.

 

 

Our stand on Legal Entity Identifiers (LEIs)

To further enhance trust and compliance, FDP Connect™ integrates Legal Entity Identifiers (LEIs) into the document tokenization process.

  • What is an LEI?
    An LEI (Legal Entity Identifier) is a unique 20-character alphanumeric code that identifies legally registered entities participating in financial transactions.

  • Why LEIs Matter in Cross-Border Trade:

    1. Trusted Verification: Ensures each exporter, importer, bank, or financial institution in the ecosystem is a verified legal entity.

    2. Global Standardization: LEIs are recognized by regulators and standard-setting bodies worldwide (e.g., ISO 17442).

    3. Fraud Reduction: Prevents identity spoofing and fraudulent documentation in global trade.

    4. Seamless Interoperability: Enables cross-border recognition of digital trade documents across different geographies and payment systems.

    5. Regulatory Compliance: Supports alignment with FATF, WTO, and financial regulators who increasingly mandate entity-level identification in digital trade and finance.

By embedding LEIs into tokenized documents, FDP Connect™ ensures that every transaction is not only digitally verifiable, but also tied to a recognized legal identity, thereby building trust, security, and transparency into the global trade ecosystem.

 

 

Why This Matters

By combining TradeTrust + FDP Connect™ + XDC, we are not just digitizing trade documents — we are creating a new layer of trust and efficiency in global supply chains. This Web3 approach ensures that different INCO terms, geographies, and payment terms — which often make trade complex — are handled with security, speed, and interoperability.

👉 With FDP Connect™, your documents move from Gate Out to Gate In — securely, transparently, and seamlessly.