The $2.5 Trillion "Working Capital Chasm"

The global economy runs on trade, but its financial plumbing is fundamentally broken. This has created a persistent $2.5 trillion global trade finance gap, a chasm between the working capital that small and medium enterprises (SMEs) need to grow and the financing that traditional banks are willing or able to provide.

This crisis disproportionately harms these SMEs, which are the primary engines of growth in emerging markets. Banks worldwide reject an estimated 41-50% of all SME finance applications.

This is not because the businesses are unviable, but because the banks' legacy systems are slow, expensive, and rely on outdated, collateral-based risk models that cannot efficiently underwrite smaller, high-velocity transactions.

SMEs are trapped in a "Working Capital Chasm": they have significant value locked in confirmed, 60-day invoices but cannot access it. This starves them of the liquidity needed to pay suppliers, take on new orders, and fund operations.

The Bottleneck in Our Pilot Markets

This problem is not abstract, it is a critical, measurable bottleneck in our target markets:

• India: SMEs are a core component of the $5.7 trillion MSME finance gap identified by the World Bank, representing one of the largest underserved markets globally.
• Vietnam: The situation is acute. Only 9.3% of SMEs have access to formal bank loans, creating an estimated $20 billion "white space" opportunity for alternative financing.

The Opportunity: Tokenisation as the Superior Solution

Traditional finance cannot solve this problem, it is the problem. The solution requires a new, more efficient set of financial rails.

RWA (Real-World Asset) tokenisation is the superior solution because it attacks the two core bottlenecks: speed and access.

1. Unlocking Speed: By moving origination and settlement to a digital, blockchain-based framework, we can cut transaction times from weeks to hours. Digital trade processes, for example, can reduce a 36-hour underwriting process to under 3 hours.
2. Unlocking Access: Tokenisation unlocks capital by converting illiquid, 60-day invoices into liquid, fractional assets. This allows a global pool of investors to access a high-yield, stable asset class (SME invoices) that was previously inaccessible, bringing net-new liquidity to the businesses that need it most.

This model is no longer theoretical; it is being actively adopted by global institutions like Visa and DBS Bank. Our opportunity is to apply this proven, institutional-grade solution to the vast, underserved SME market.