Introducing the world's first smart bartering on the blockchain
Cross-border physical commodity trading platform
Binkabi is developing a decentralised, cross-border physical commodity trading platform that leverages blockchain technology.
Binkabi's core innovation, Barter Block, empowers developing countries to trade securely and cheaply with each other in their local currencies
Binkabi is developing a physical agricultural commodity trading system leveraging a new database technology called the blockchain. We believe that the future of commodities trading will be decentralised, which will reduce not only intermediation costs but the risk of failure by a centralised party. Among the key benefits of the blockchain are:
Single source of truth
Align interests of actors in ecosystem
Tokenisation of trade assets providing supply chain liquidity
Cheap & Secure
Cheap, secure way to transfer value
Reduce frictions and costs at trade
The world's first smart bartering protocol on the blockchain
Our key innovation, Barter Block, allows bilateral trades to be settled in local currencies, saving FX costs and increasing profits in international trade. Barter Block is the world's first smart bartering protocol on the blockchain.
Opposite trades are blocked together for the purpose of settlement. Barter Block could be formed pre or post-trade, between one export trade and one import trade or many export trades and many importer trades provided that within a country, trades net down to near zero and their settlement dates are close together. The chart above shows four different scenarios of Barter Blocks.
Barter blocks could be formed by a netting algorithm (computer will make recommendations to parties based on open orders) or manually by parties involved in a trade upon receiving an incentive by the Binkabi platform.
The performance of individual trades are enhanced by the blockchain and there are no interdependence among the trades within a Barter Block. If for some reason, a trade within a Barter Block doesn't complete our platform will automatically find another replacement trade so as the net FX exposure is minimised.
Agricultural commodity tokenisation
We will enable the tokenisation of supply chain assets such as commodity warehouse receipts. For farmers this will ensure wider access to market, allowing them to achieve higher prices for their produce. Farmers could also put up their tokens as collateral to get short term loans for their living expenses whilst waiting for higher prices to sell. Token trading will eliminate the needs for developing countries to set up expensive centralised commodity exchanges. Leveraging blockchain technology, we will enable banks to get accurate and timely data on assets, liabilities and trading history, allowing them to provide competitive financing packages to Binkabi network members.