Linklogis has announced a new partnership with XRP Ledger to digitize global trade finance. This collaboration involves integrating Linklogis's digital supply chain finance application onto the XRPL mainnet.
Digitization of Finance with XRPL
Linklogis's digital platform on XRPL allows the tokenization of invoices, receivables, and trade assets. This will increase liquidity, speed up settlements, and reduce transaction friction across borders. XRPL's system ensures secure and near-instant settlements, which is essential for enterprises to tackle global trade complexities.
Achievements of Linklogis in Trade
Following its 'Go Early, Go Deep' strategy, Linklogis processed RMB 20.7 billion (roughly $2.8 billion) in cross-border trade finance in 2024 across 27 countries. That year, the company also reported a total transaction volume of RMB 411 billion and a revenue of RMB 1.03 billion, marking a 19% increase year-on-year.
Prospects and Challenges of New Technology
The Linklogis and XRP Ledger partnership will also explore stablecoin-based settlements for faster cross-border payments. However, despite these advancements, tokenization brings risks such as low liquidity of tokenized assets and regulatory uncertainty, which may hinder the growth and expansion of the RWA segment.
The partnership between Linklogis and XRP Ledger creates new opportunities for the digitization of global trade finance. Despite existing challenges, the potential for simplifying and automating processes is significant.
