An assessment and comparative analysis of trade finance initiatives utilizing distributed ledger technology

Distributed Ledger Technology (DLT) has risen to prominence as one of the decade’s most disruptive technologies. It has the potential to fundamentally alter how individuals do business, monitor their goods, and handle their personal data. For decades, trade finance has been experiencing a digital revolution. It is, however, the outcome of an inability to digitize and streamline corporate operations. As a result, trade finance is still primarily a paper-based and labor-intensive enterprise. Additionally, costs continue to be persistently high. This is due in part to rising regulatory constraints. However, the development of new technologies such as blockchain and distributed ledger technology (DLT) has increased the pace of this digital transformation. Numerous distributed ledger technology (DLT) initiatives have sprouted up to assist in connecting diverse key parties and improving trade finance and supply chain finance operations. The platforms must be assessed and rigorously studied to determine their applicability, resilience, and long-term viability. In this article, we conducted a survey of various top DLT platforms for Trade Finance and assessed their capabilities using a qualitative criteria. The comparative analysis offered in this article will assist in selecting the optimal platform for the job.