Trade-focused investment and venture-building platform GTR Ventures has announced a strategic investment in XDC Trade Network, a blockchain-based suite of trade finance tools.

XDC Trade Network was launched last year as a partnership between the XDC Network blockchain and TradeTrust, a digital trade utility overseen by Singapore’s Infocomm Media Development Authority.

It allows users to digitise trade documents in alignment with UNCITRAL Model Law on Electronic Transferable Records (MLETR) standards, which can then be used by borrowers to raise capital.

Authenticating and validating digital trade documents on a blockchain also helps mitigate the risk of fraud, XDC says.

“Our partnership with GTR Ventures comes at an exciting time for us, as we embark on a seed funding round to bring our proven technology to more customers worldwide,” says Sunil Senapati, co-founder and chief executive of XDC Trade Network.

“GTR Ventures’ global network of traders, importers, exporters and trade lenders will be instrumental in helping us scale globally.”

XDC Trade Network’s current seed funding round is over 10% committed.

Senapati adds: “We welcome interested investors in trade to join us on a transformational journey to unlock billions of dollars in productivity gains in the fragmented trade and supply chain sector, which remains heavily reliant on paper documents and antiquated workflows.”

MLETR-based legislation has already been adopted by major trade economies including the US, France, the UAE, Singapore and the UK, with Australia and India also considering implementation.

Rupert Sayer, co-founder and chief executive of GTR Ventures, adds: “XDC Trade Network joins the GTR Ventures’ network of tradetech players, all playing a part in narrowing the global trade finance gap.

“Users save time and money for each trade transaction, mitigate fraud, and enjoy access to a verified pool of financing options. Its technology stack, built on top of MLETR standards, is a key enabler in realising our vision of a world seamlessly connected by digital trade.”