Whitepaper
Last updated
Last updated
The global trade finance gap, estimated to exceed $1.7 trillion annually, presents a significant barrier to economic growth, particularly for small and medium enterprises (SMEs) in emerging markets. VOY is a digital trade finance platform designed to tackle this pervasive issue. By leveraging blockchain technology, artificial intelligence, and advanced analytics, VOY enables secure, transparent, and efficient trade finance solutions for businesses of all sizes. This whitepaper outlines how VOY addresses the critical challenges in trade finance, including limited access to funding, lengthy processes, and inefficiencies.
Trade finance is the lifeblood of global commerce, facilitating transactions worth trillions of dollars annually. Yet, many businesses, particularly SMEs, struggle to access the credit they need to participate fully in global trade. Key factors contributing to the trade finance gap include:
High Credit Risk Perception: Financial institutions often view SMEs as high-risk borrowers due to limited credit history and perceived instability.
Inefficiencies in Traditional Processes: Paper-based systems and manual approvals create bottlenecks, increasing costs and delays.
Lack of Transparency: Limited visibility into transactions deters financiers from extending credit.
Liquidity: The lack there of due to a closed financial industry, until now with digitisation, RWAs and pioneers in tradetech.
VOY is an end-to-end digital platform that redefines trade finance through three core pillars: technology, accessibility, and transparency. By addressing the root causes of the trade finance gap, VOY empowers businesses, reduces risk for financiers, and drives global economic growth.
VOY digitizes trade flows and documents, creating a secure, efficient, and scalable on-chain financial ecosystem. Key features include:
Paper to Digital-Based Systems: Digitizing traditional trade flows with blockchain to lend three times more per annum.
On-Chain Financial Ecosystem: Leveraging blockchain technology to ensure transparency and secure transactions.
Digital Asset Payment Solutions: Seamless payment integration with stablecoins and other digital assets.
Digital Documents: Smart contracts and tokenized documents for automated compliance and reduced inefficiencies.
AI-Powered Processes: Enhancing operational efficiency through AI-driven workflows and credit assessments.
DeFi Liquidity Vaults: Unlocking access to a $3.8 trillion market, enabling robust liquidity and financial stability.
Democratized Earnings: Offering stakeholders yields ranging from 12% to 24%.
Bitcoin-Collateralized Lending: Enhancing financial security and unlocking new funding streams.
On-Chain ID and Compliance Protocols: Ensuring seamless and secure compliance in a Web3 marketplace.
Web3 Marketplace: A compliant, tokenized ecosystem for trade finance participants.
VOY digitizes real-world asset (RWA) trade finance receivables and invoices, ensuring compliance with frameworks such as MLETR and TradeTrust. The process includes:
Tokenization: Deploying these digitized documents onto an ERC-3643-compliant tokenized marketplace.
Validation on Chain: Originators upload and validate trade documents on-chain via the tokenization protocol, ensuring authenticity and transparency.
Once tokenized, funding for trade receivables occurs on-chain. This process includes:
Funding via Digital Assets: Digital assets, such as Bitcoin, are swapped into stablecoins within secure vaults.
Promissory Note Issuance: A tokenized promissory note is issued to financiers, ensuring accountability and clarity.
Atomic Delivery vs Delivery (DvD) Swaps: This mechanism ensures simultaneous exchange of funds and goods title, minimizing counterparty risk.
The tokenization and funding process drive growth in the Net Asset Value (NAV) pool and deliver consistent returns to stakeholders. Key features include:
Bitcoin Vault Protocol: Funds enter the Bitcoin vault, which integrates with leading DeFi protocols like Aave, Lido, and Compound to maximize yields (up to 24%).
RWA Yield Distribution: Stakeholders earn secure returns while contributing to financial inclusion and economic growth.
By connecting with DeFi ecosystems, VOY enhances global financial inclusion and supports macroeconomic growth:
Enhanced GDP: By unlocking trade finance for underserved markets, VOY contributes to increased trade volumes and economic development.
Global Bitcoin Validation: Supporting RWA lending through Bitcoin vaults amplifies its role in global finance and promotes trust in tokenized systems.
VOY integrates regulatory technologies (RegTech) to ensure seamless compliance with international trade laws and standards. Features include:
Automated Compliance Checks: Reducing manual errors and ensuring adherence to local and global regulations.
Standardized Processes: Harmonizing documentation to streamline cross-border trade.
VOY delivers measurable benefits to all stakeholders in the trade finance ecosystem:
Faster Access to Credit: Streamlined processes reduce application-to-disbursement timelines.
Lower Costs: Efficient digital workflows reduce overheads and transaction fees.
Enhanced Market Opportunities: Improved access to funding enables participation in global trade.
Reduced Risk: AI-driven assessments and blockchain transparency minimize default and fraud risks.
New Revenue Streams: Expanding into underserved SME markets unlocks growth opportunities.
Operational Efficiency: Automation reduces costs and accelerates processes.
Economic Inclusion: Bridging the trade finance gap promotes equitable growth.
Supply Chain Resilience: Enhanced access to finance strengthens supply chain networks.
Sustainability: Transparent operations support environmental, social, and governance (ESG) initiatives.
VOY is a transformative solution designed to address the critical trade finance gap that hinders global economic potential. By combining cutting-edge technology with a focus on inclusivity and transparency, VOY empowers SMEs, mitigates risk for financiers, and fosters sustainable growth. With the integration of tokenized RWA lending, Bitcoin vault protocols, and DeFi connectivity, VOY sets a new benchmark in trade finance innovation. Together, we can create a world where trade finance is accessible to all, driving innovation, resilience, and prosperity.
