Trade finance marketplace LiquidX has carried out the first securitisation facility on its platform, a month after it launched an automated digital distribution tool for trade finance assets.

The transaction saw LiquidX source and facilitate a US$125mn accounts receivable finance programme for an unnamed company in the technology, media and telecom (TMT) sector. The structure achieved true sale recognition through the securitisation of the US$20bn company’s portfolio of over 3,000 customers. German bank Nord/LB acted as the agent and arranger, and LiquidX served as reporting agent.

“We are pleased to facilitate this transaction, which improves our client’s liquidity position and advances our vision of building the most complete digital solution for trade financing,” says Jim Toffey, CEO of LiquidX.

LiquidX’s digital distribution tool allows banks and asset managers to initiate single-click trading with their investor networks under existing agreements, or to the LiquidX network of over 50 funders. The automated reporting infrastructure on the LiquidX platform lowers the cost of administratively complex and expensive transactions for both corporations and financial institutions. The platform ingests files in any format and uses machine learning and distributed ledger technology to automate and validate working capital assets throughout their lifecycle.

All participants are connected in one digital environment, allowing for transparent visibility, faster transaction processing, and comprehensive data gathering. This enables banks and asset managers to increase their trade finance volumes while eliminating manual processes that are a source of delay, inefficiency, fraud risk, and error, the company says.