The vast majority of trade is intra-national (in-country), which is clearly less risky. Yet in the global international trade space, where there is risk of no payment and no insurance available, LC’s suddenly become a must have item.

We do however NOTE that the hot topic right now is the blockchain, and how it can disrupt trade finance. However, when we look CLOSELY, the same approach taken for Letters of Credit in giving both PARTIES the proof that the transaction is fair. As market complexity increases, and speed of transaction and efficiency is important, we think that there will be a NEW set of opportunities in the future.

The vast majority of trade is intra-national (in-country), which is clearly less risky. Yet in the global international trade space, where there is risk of no payment and no insurance available, LC’s suddenly become a must have item.

We do however note that the hot topic right now is the blockchain, and how it can disrupt trade finance. However, when we look closely, the same approach taken for Letters of Credit in giving both parties the proof that the transaction is fair. As market complexity increases, and speed of transaction and efficiency is important, we think that there will be a new set of opportunities in the future.