Fintech-enabled fund manager TradeFlow Capital Management (TradeFlow), part of the Supply@Me Group (LON:SYME), and Baltic Exchange, a provider of global freight market information and other maritime services, have successfully completed a pilot escrow transaction as part of a commodity trade executed through TradeFlow.
The transaction, which involves a shipment of agri-commodities from India to China, heralds a new age in the fast and secure digital exchange of ownership of physical commodities and payment. The service will initially focus on the underserved segment of small and medium-sized enterprises (SMEs) operating in the bulk commodity markets.
This successful test case paves the way for greater adoption of technologies and escrow processes which will reduce paperwork, minimise transaction time, and improve the overall efficiency of commodity trades, increasing the turnover velocity of capital in the commodity trade ecosystem without compromising security.
The Baltic Exchange runs an independent escrow service that holds funds on behalf of clients in dedicated escrow bank accounts. The service has been adapted to meet the needs of a range of markets and uses cases including asset sale & purchase transactions, disputes and as security for vessel chartering activities.
