- Polytrade plans to use the seed investment to diversify its product offering.
- It is to create models to migrate the trading supply system.
- Polytrade has raised more than $11 million in traditional credit facilities.
A group of investors, including Alpha Wave, Matrix Partners, Polygon Ventures, and CoinSwitch Ventures, have invested $3.8 million in Web3 Polytrade as startup money. The company seeks to streamline supply chains for global trade through blockchain technology. Together with many angel investors, Singularity Ventures, GTM Ventures, and others took part in the investment round.
Polytrade is a newcomer in the decentralized finance (DeFi) market. According to the company, it plans to use the $3.8 million seed investment to diversify its product offering, which primarily focuses on marketing efforts, and grow into the European and Latin American markets. Polytrade intends to concentrate on creating an entirely integrated trade platform during the following two quarters.
Biggest Problem In Global Supply Chain
With the use of real-time data, Polytrade seeks to streamline supply chains. The company CEO and founder Piyush Gupta states that the lack of openness in the global supply chain is the biggest problem. The reliance on paperwork and manual processes is one of the reasons behind this.
Polytrade allows SMEs and big businesses to look into working capital finance options to solve the issue. The goal is to grow the trade financing book to $50 million by 2023.
According to the company’s website, users can deposit stablecoins on the Polytrade lender pool to finance Real-World Assets that are insured and have double-digit yields.
With the help of the additional funding, Polytrade aspires to create several models that will aid in migrating the complete trading supply system to the blockchain.
What Will The New System Change?
Piyush Gupta is aware of any potential negative effects Web3 technology may have on the world. He is certain that trade finance will become a well-liked asset class among investors because of Polytrade’s stability and alluring rewards.
The business actively participates in several trade finance procedures, including underwriting, tokenisation, collections, and dealing in secondary assets.
ZK-ID, a new on-chain identification system that Polytrade has stated it would launch, will improve the creditworthiness of both suppliers and buyers. The likelihood of fraudulent transactions is predicted to decline due to this technology’s ability to protect and expedite the verification process.
The company has raised over $11 million in traditional credit facilities and DeFi liquidity, giving it the biggest capital pool of any trade financing platform in the DeFi industry.
The CEO and co-founder of CoinSwitch, Ashish Singhal, believes that Polytrade’s Web3 protocol has the potential to transform the tokenisation of physical goods completely.
Although the platform is accessible to the retail sector, institutional players receive most of its attention since they are more long-term focused, according to Gupta.
He stated that Polytrade intends to develop other methods to move the entire trading supply system onto the blockchain.
He also talks about his sole objective: to put every trade document, financial transaction participant, and trade counterparty on a chain so that everyone can go to one blockchain page and know everything about a specific buyer or supplier.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.