Traxia
Traxia
Token: TMT


A Blockchain Solution To Disrupt Trade Finance

ICO dates
Start date: 2018-02-25
End date: 2018-06-06

Registrated in: Switzeland

Platform: Ethereum
Type: ERC20

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Traxia categories
Banking Business services Smart Contract
Traxia whitepaper
Traxia token sale
KYC passing required Yes | Whitelist Yes | Restriction for countries None
Token distribution in ICO
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Price 1 TMT = 0.15 USD
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Random whitepaper excerpts

Background
3
What is Trade Finance?
4
Actors
4
Objects
4
Terms
5
Traditional Trade Finance Products
5
Factoring
5
Letter of Credit
6
Supply Chain Finance (SCF)
6
Securitization
7
Market Opportunity for a blockchain powered solution
9
The growth of Factoring
10
Traxia’s solution: a decentralized trade finance ecosystem
11
The Smart Contract
13
The Actors
13
1. Seller
13
2. Buyer
14
3. Investors
14
4. Issuing Provider
14
5. Listing Providers
14
6. Loan Warehousing
15
Tokenized access to the Traxia platform
15
What we already built
16
Initial Proof of Concept
18
Traxia and LiqEase
19
Business Strategy
19
Stage 1
20
Stage 2
20
Stage 3
20
Product Architecture and Development Roadmap

Background
On any given day around the world there are around $43 trillion of accounts
receivable or accounts payable on the books of businesses, of which, banks only finance
around $3 trillion of the total (Kemper, 2016). On a more granular level, there is a gap in
global trade finance of around $1.6 trillion, most arising from Asian companies (Asian
Development Bank, 2016). The International Chamber of Commerce refers to trade
financing as the ‘oil’ in the engine of international commerce and highlights the unmet
demand for such financing (International Chamber of Commerce, 2017).
This gap is a result of a misalignment in terms of the demand for trade related
credit and the liquidity of funds provided. It is disproportionately available to
multinationals and large corporates – the top end of the market – and consistently absent
in the SME segment (International Chamber of Commerce, 2017). Simply said, SMEs are
faced with little choice but to accept their large customer’s payment terms, ...

yet most corporates and banks still routinely exchange paper documents
(International Chamber of Commerce, 2017)
SMEs account for more than one-half of the world’s GDP and employ two-thirds
of the global workforce (World Economic Forum, 2015). The number one barrier to
growth faced by SMEs around the globe is access to financing (International Labour Office,
2015). This is not a new issue and the 2008 financial crisis only worsened the problem.
Many local retail banks, who are often the primary and only providers of SME financing,
have lost their appetite for taking on higher-risk SME loans. It is estimated that SMEs
faced in 2015 a $2 trillion USD global credit gap (World Economic Forum, 2015).
What is Trade Finance?
Global and local banks support international trade through a wide range of
products that help their customers manage their international payments and associated
risks, and provide needed working capital. The term “trade finance” is generally reserved
for bank products tha...

Production facilities, which provide the underlying logistic networks, as well as the
equipment needed for customs clearance and the transport within the network are
considered fixed assets within a supply chain. The term working capital comprises all
current assets transformable into liquid assets within one production cycle or at least
within one year. Circulating assets minus the short-term liabilities are called net working
capital. A key figure which, in this context, is suited for an examination of the cash flow is
the cash-to-cash-cycle. The latter is calculated as follows:
Cash-to-cash-cycle = average turnover period + period of receivables - period of payables
The cash-to-cash-cycle is the period of time needed for a company to transform
the cash drain resulting from paying the suppliers into cash inflow from customers again.
The cash-to-cash-cycle thus is a key figure to a dynamic and holistic treatment of the net
working capital performance both within the company and within the supply chain. <...

Letter of Credit
One of the most common and standardized forms of bank-intermediated trade
finance is a letter of credit (L/C). L/Cs reduce payment risk by providing a framework
under which a bank makes (or guarantees) the payment to an exporter on behalf of an
importer once delivery of goods is confirmed through the presentation of the appropriate
documents.
For the most part, L/Cs represent off-balance sheet commitments, though they
may at times be associated with an extension of credit. This can occur, for example, if an
import L/C is structured to allow the importer a period of time (known as “usance”)
before repaying the bank for the payment it made on the importer’s behalf. Banks may
also help meet working capital needs by providing trade finance loans to exporters or
importers. In this case, the loan documentation is linked either to an L/C or to other forms
of documentation related to the underlying trade transaction.
Supply Chain Finance (SCF)
To avoid confusion, it sho...

Securitization
Figure 2 – a typical securitization process
Before discussing in detail on how blockchain may change the securitization
lifecycle, a brief high-level review of securitization (Figure 2) may be helpful.
It begins with originating and underwriting
2
of loans, which are then serviced
regularly, similar to traditional bank lending. An issuer or originator pools together many
loans, places them in a bankruptcy-remote trust or special purpose vehicle (SPV), and
structures the securities. An auditing firm reviews the pool and provides a pool audit
letter and an agreed-upon procedures letter covering the pool statistics provided to
investors. Rating agencies may be asked to express an opinion on the securities’ credit-
worthiness by providing a credit rating.
The underwriters’ task is to raise investment capital. They work with a counsel
and the transaction sponsor to prepare an offering document. The underwriters then
price and bring the securities to market, whe...

of US Dollars. Shortcomings of the current setup and efficiency gaps in the securitization
value chain are: non standardized processes and dependencies on central clearing houses
and custodians.
In this context, blockchain can have a large impact in transforming and
enhancing securitization.
...

Market Opportunity for a blockchain powered solution
Opportunities for blockchain solutions in the trade finance securitization process
are summarized by Deloitte in the flow below. This is the platform that Traxia will create
(Delloite, 2017):
Figure 3: Blockchain and Securitization - a possible look at the future
Step 1: As a borrower and lender agree to the terms of a loan, a new electronic asset is
created on the blockchain and time-stamped. Ownership information and other
pertinent underwriting data, such as supporting documents or Credit scores, are
attached to the loan and recorded on the blockchain. This information cannot be altered
without a new consensus between the borrower and loan owner.
Step 2: Relevant information about the loan is automatically coded into a smart contract
which governs the automated servicing of the loan. As the borrower makes or fails to
make payments, this history is added to the loan-level data and supports future servicing
decisions, such as the possible...
Darren Camas
Advisors Darren Camas

Jake Fisch
Advisors Jake Fisch

Zennon Kapron
Advisors Zennon Kapron

Wei Zhou
Advisors Wei Zhou

Carl Wegner
Advisors Carl Wegner

Tobias Pfütze
Team Tobias Pfütze CEO & Co-founder

Florian Zeim
Team Florian Zeim co-Founder & Product Development

Bruno Botelho
Team Bruno Botelho CMO

Sebastien Cheng
Team Sebastien Cheng Business Development Executive

Armin Bieser
Team Armin Bieser Senior Management and Strategy Support

Jerome Eger
Team Jerome Eger Business Development

Alexander Feenie
Team Alexander Feenie Business Development

Joyce Gu
Team Joyce Gu Senior Sales Support

Miguel Solana
Team Miguel Solana Product Strategy and Europe

Darren Camas
Darren Camas
Advisory Board Chairman
Advisor
Miguel Solana
Miguel Solana
Product Strategy and Europe
William Bao Bean
William Bao Bean
General Partner at SOSV
Advisor