Transparency and certainty
Collateral is essential for certainty within a financial system of any size. TradeFlows allows payments to be collateralised while allowing the collateralising counterpart to control the cashflows by pausing them or even withdrawing the collateral at anytime with instant settlement. Service providers are able to see any action linked to the collateral in order to increase transparency and mitigate uncertainty.
Settlement risk due to the potential of operational errors increases the need of over collateralisation. This collateral simply sits idle and comes at high funding costs for many businesses. Collateral is a very important part of risk mitigation but TradeFlows aims to ensure it is optimally deployed across the supply chain.