PolyTrade is a web3 protocol that maintains a lending pool to finance secured and insured real-world assets through blockchain technology while ensuring sustainable and dependable yields. The platform takes real-world assets and tokenizes them on-chain to create polos that generate yields that are sustainable and dependable. The platform allows users to also deposit stablecoins into PolyTrade’s pool and use them to lend safely to underwritten investment options with backing from real-world assets. The firm prides itself in bringing a revolution to trade finance by bringing real-world finance to web3 through cutting edge DeFi and Fintech(Financial Technology). The platform also claims to have established the first ever on-chain POT(Proof Of Trade). The firm works by allowing individuals, the community and financing partners to create liquidity pools that are credit risk insured on the PolyTrade blockchain network through their deposits which can then be used to finance SMEs(Small and Medium Enterprises).
PolyTrade has since raised $3.8 million in a seed fundraising round led by Alpha Wave, Matrix Partners, Polygon Ventures and CoinSwitch Ventures. The round also garnered participation from other investors like Singularity Ventures and GTM Ventures. While confirming this development to TechCruch, PolyTrade’s CEO Piyush Gupta, has also iterated hat the firm aims to streamline supply chains through real-time data. Mr. Gupta went ahead to express that the biggest challenge that supply chains lack is the lack of transparency. Traditional supply chains involve manual processes with hectic paperwork let alone the fact that Indian banks require ink-based signatures on submitted documents. In its initial modules, the firm set up a financial arm that brings real-world yields onto web3 and provide firms ranging from SMEs to Large corporations with access to working capital and invoices. The India-based platform currently has 2 million invoices.
In 2023, the platform expects its financing book to reach $50 million. In the next year, the platform aims to look for a liquidity pool of $200 million and pump it into its liquidity protocol to create a $1 billion plus trading ecosystem volume. The platform is mainly open to the retail market but the firm is targeting institutions because they are more long-term oriented. The CEO also revealed plans to expand outside India to the Us, Latin America and Europe. Mr. Gupta has also said that he has a single purpose to bring every trade document and financial player onto the chain so as to facilitate access to information regarding both buyers and and suppliers.
PolyTrade has a very diversified investment portfolio that facilitates allocation of assets across Industries. The breakdown of the firm’s investment across industries is as follows: 8.5% in FMCG(Fast Moving Consumer Goods, 3.88% in garments, 16.04% in leather products, 12.81% in manufacturing, 2.42%in Metal industries, 15.07% in packaging, 37.41% in textiles and 3.88% in the trading industry. PolyTrade development team has a vast experience and is drawn from numerous companies like J.P Morgan, Securrency, and Societe Generale among others. The firm has also managed to attract partners like Polygon, Metamask and Fractal among many others. In the first quarter of 2023, the firm has plans to launch a new website, tokenize invoices on chain, launch a testnet for RWA(Real World Assets) market place and create a first Central Finance pool as well as map each invoice to a pool.
