The rampant DeFi adoption has witnessed massive opportunities to transform the fintech space. Today, the emerging modern financial industry is witnessing the convergence of trade finance and decentralized finance. Platforms such as Polytrade are instrumental in the systematic application of blockchain technology by promoting trade finance in the world of DeFi.
Polytrade envisions bringing real-world assets to the crypto world, thus creating a seamless experience by connecting buyers, sellers, insurers and investors. It is focused on providing real-world borrowers with seamless lending options with low-interest rates and swift financing, fine-tuning the overall experience of small lenders. Moreover, Polytrade strives to build a full-stack lending protocol to empower the growth of small businesses by bringing innovative solutions to the DeFi world. Leveraging blockchain technology to its fullest potential, it aims to simplify receivables financing for real-world borrowers freeing up critical working capital by supplying liquidity and capital tapped from crypto natives.
With the mission to shape the future of trade finance, Polytrade has successfully closed its funding rounds, raising $1.2 million from notable investors and industry leaders including Sandeep Nailwal (Polygon), Master Ventures, Orion Protocol, AU21 Capital, Spark Digital Capital, LD Capital Limited, Icetea Labs, Momentum 6, Krypital Group, ROK Capital, Ramani Ramachandran (Router), Amesten Capital, Axia Ventures, Shima Capital and DaSheng Capital. Polytrade’s innovative idea has aligned with the vision of the investors to drive the mainstream adoption of DeFi.
Piyush Gupta, the CEO of Polytrade said:
“We are humbled by the trust our investors have put in us. With our vast experience and stellar team, we are confident that this trust is not misplaced. We also thank the drive that the community has been giving us to achieve more. The journey has just begun, we have further to go.”
With an experienced team relentlessly working toward amalgamating traditional and modern finance, Polytrade is constantly striving to address the issues faced in the $7-trillion trade finance industry. One of the major issues is the $1.5-trillion gap between the supply and demand for short-term credit, which remains unaddressed due to various issues in conventional business practices of trade finance. Significant financial institutions including the World Economic Forum, Asian Development Bank and others have affirmed the lack of innovative solutions for these prevalent issues. The tedious processes of traditional banks, paper-based formalities, stringent regulatory policies, banking regulations, fraudulent activities and restrictions on transactions have made it quite a journey for users to sail through.
Redefining trade finance through innovative solutions
Building on the Polygon Network, Polytrade is striving toward fine-tuning the entire experience of an average trader relating to receivables financing. Currently, it is working toward tokenizing real-world assets employing blockchain technology to support the seamless transfer of assets on-chain. Polytrade is also actively creating a liquidity pool and providing insurance-backed investments to crypto natives, reinforcing a safety aspect to attract investors. Although cryptocurrencies are dynamic in nature, it aims to minimize the risk for investors in respect to volatility. Through Polygon, Polytrade aims to bring scalability, low-transactions costs and high throughput in its ecosystem.
Sandeep Nailwal, chief operations officer of Polygon, believes that trade finance is an indispensable aspect of the financial space. He said:
“It’s exciting to see Polygon become the chosen platform not just for crypto native ventures but also for centuries-old trade finance-related applications. The Polytrade team is well-experienced in the invoice-factoring business with $500 million under its belt in the last six years. Getting this well-running business on blockchain will be the much-needed push that both the worlds need.”
The platform is all geared up with this product development and marketing activities. As a part of the initial stages of product building, Polytrade has successfully closed funding rounds and secured strategic partnerships. The team has already released its white paper and launched its website, social media accounts and initial documents advocating continuous progress on the product front.
As a part of future milestones, the team will be working on designing mobile applications, a web interface, launching a liquidity pool, and executing its first transaction.
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