Important Disclosure. Tokenized notes are offered to qualified purchasers through private placements. Trade finance assets carry counterparty, legal and settlement risk. This overview is a summary; mandate agreements and private‑placement memoranda govern.
Trade Finance Tokenization Services
FG Capital Advisors turns traditional letters of credit, stand‑by LC cash flows, purchase‑order receivables and warehouse receipts into on‑chain tokens. Each token represents a perfected security interest in a short‑tenor trade asset, giving sponsors a faster funding route and investors a transparent yield stream.
Why Tokenize Trade Finance?
- Liquidity. Fractional tokens tap capital pools that ignore whole invoices or LC strips.
- Speed. Smart contract settlement slashes days off paper‑based payment cycles.
- Transparency. Immutable record shows origin, assignment and performance of each asset.
- Cost. SPV issuance fees often undercut warehouse lines or forfaiting spreads by 100‑200 bps.
- Reach. Digital securities list on regulated alternative marketplaces, widening buy‑side access.
Process Overview
| Phase | Key Steps | Turnaround |
|---|---|---|
| Asset Onboarding | Eligibility test, KYC on seller, data‑room build, performance scoring. | 5‑10 business days |
| Structuring & Legal | SPV set‑up (Delaware or BVI), pledge agreement, cash‑management waterfall. | 10‑15 business days |
| Token Generation | Smart contract deployment, on‑chain registry, security audit. | 3 business days |
| Distribution | Private placement memorandum, qualified investor road‑show, token allocation. | 2‑4 weeks |
| Servicing & Reporting | Daily payment reconciliation, chain‑verified status updates, monthly NAV. | Ongoing |
Service Scope
- Asset screening and credit scoring (ICC rules and Basel capital factors).
- Token structuring, SPV accounting, custodian account set‑up.
- Smart contract build on permissioned chain compliant with ISO 20022.
- Placement to qualified purchasers under Rule 506(c).
- Post‑issuance monitoring and waterfall distribution until maturity.
Mandate & Pricing
| Item | Detail |
|---|---|
| Retainer | USD 175 000 (covers legal, tech audit, smart contract build) |
| Success Fee | 3 % of tokenized face value payable at close |
| Minimum Volume | USD 10 million per mandate |
| Settlement Bank | Tier‑1 correspondent bank, segregated collection account |
Risk Management
- All counterparties screened under EU and OFAC sanctions lists.
- Payment triggers routed through escrow; trigger failure auto‑freezes tokens.
- Monthly third‑party reconciliation of cash waterfall vs. on‑chain ledger.
- Legal opinions cover true sale, security interest and token classification.
Start Your Tokenization Mandate
Submit your trade asset pack and receive a feasibility term sheet within five business days. Contact contact@fgcapitaladvisors.com to schedule an initial call.
