TDFT Digital Instruments

Group 4

Nine blockchain-native financial instruments transforming traditional trade finance. Automated, transparent, and built for the digital economy.

TDFT

Digital Instruments

Nine blockchain-native financial instruments transforming traditional trade finance. Automated, transparent, and built for the digital economy.

Group 4

The TDFT Framework

Tolena Digital Financial Technology (TDFT) modernizes trade finance by converting traditional paper-based instruments into smart contract-powered digital tools.

DCC – Digital Credit Contract

Replaces: Letter of Credit (LC)

A blockchain-based payment guarantee that ensures sellers receive payment and buyers receive goods according to agreed terms. Automates the verification process that traditionally requires banks to manually review shipping documents.

Key Benefits
Instant verification through smart contracts
75–90% reduction in costs (eliminate 0.5–2% bank fees)
Settlement in seconds vs. 5–10 business days
Real-time tracking for all parties
Immutable records prevent document fraud
Primary Use Cases
International trade transactions
High-value commercial purchases
Cross-border B2B payments
Import/export financing
DGI – Digital Guarantee Instrument

Replaces: Bank Guarantee (BG)

A programmable performance guarantee that automatically triggers payment if contractual obligations aren’t met. Replaces manual claims process and subjective dispute resolution of traditional bank guarantees. Performance metrics are fed to contract via IoT sensors or milestone verification. If breach occurs, guarantee pays out instantly without dispute. Obligor stakes collateral upfront.

Key Benefits
Automated execution without manual claims filing
50–80% reduction in guarantee fees
Objective verification eliminates disputes
Instant claims (minutes vs. weeks)
Reduced collateral through risk-based pricing
Primary Use Cases
Construction project performance bonds
Supplier delivery guarantees
Lease security deposits
Tender bid bonds
Warranty guarantees

DSEB – Digital Smart Exchange Bill

Replaces: Bill of Exchange (BoE)

A programmable payment order enabling sophisticated commercial credit terms with automated acceptance tracking and payment scheduling. Digital version of the three-party negotiable instrument.

Key Benefits
Programmable complex payment schedules
Instant digital negotiability
Automated acceptance via cryptographic verification
Transparent endorsement chain
Lower discounting costs due to transparency
Primary Use Cases
Deferred payment terms in B2B sales
Trade finance discounting
Supply chain financing acceptance via cryptographic verification
Cross-border commercial credit
DPN – Digital Promissory Note

Replaces: Promissory Note (PN)

A blockchain-secured debt instrument representing an unconditional promise to pay. Creates tamper-proof, instantly verifiable IOUs that can be traded on secondary markets with complete payment history.

Key Benefits
Immutable record cannot be altered or forged
Instant verification for lenders
Automated scheduled payments
Complete credit history travels with borrower
Easily traded with transparent pricing
Primary Use Cases
Personal and business loans
SME financing
Invoice financing
Peer-to-peer lending
Student loans
DFA – Digital Factoring Agreement

Replaces: Factoring Agreement (FA)

Automated invoice financing allowing businesses to sell accounts receivable instantly at transparent rates. Eliminates lengthy approval process and opaque pricing of traditional factoring.

Key Benefits
Instant liquidity (hours vs. weeks)
Dynamic transparent pricing
30–60% reduction in factoring fees
No recourse options available
Finance individual invoices, not entire ledger
Primary Use Cases
Small business cash flow management
Seasonal inventory purchasing
Growth capital for expanding companies
Industries with long payment terms

DFO – Digital Forfaiting Obligation

Replaces: Forfaiting (FF)

Blockchain-based export financing where exporters sell medium/long- term receivables without recourse. Automates complex process of converting foreign receivables to immediate cash while transferring all risk.

Key Benefits
Zero recourse risk for exporter
Instant transparent pricing
Lower costs (no physical documentation)
Broader access (smaller transactions viable)
Integrated political risk insurance
Primary Use Cases
Capital equipment exports
Large-scale project exports
Emerging market transactions
Multi-year payment terms
Government procurement

DTF – Digital Trade Finance

Replaces: Trade Finance Agreement

Comprehensive end-to-end automation of international trade transactions, integrating documentation, financing, insurance, and logistics. Coordinates all parties in single blockchain ecosystem.

Key Benefits
Single source of truth for all parties
Automated document generation
Integrated financing and insurance
Automatic customs compliance
End-to-end shipment tracking
Primary Use Cases
Complex multi-party international trades
Commodity financing
Global supply chain management
Export/import documentation
Customs clearance automation
DBA – Digital Bond Agreement

Replaces: Bonds / Fixed Income Securities

Blockchain-based export financing where exporters sell medium/long- term receivables without recourse. Automates complex process of converting foreign receivables to immediate cash while transferring all risk.

Key Benefits
Automated coupon payments on schedule
Fractional ownership (lower minimums)
Instant settlement (vs. T+2/T+3)
Transparent real-time pricing
60–80% reduction in issuance costs
Primary Use Cases
Corporate bond issuance (especially SMEs)
Municipal bonds
Green/sustainability bonds
Infrastructure project financing
Peer-to-peer fixed income investing
DLA – Digital Loan Agreement

Replaces: Bonds / Fixed Income Securities

Blockchain-based export financing where exporters sell medium/long- term receivables without recourse. Automates complex process of converting foreign receivables to immediate cash while transferring all risk.

Key Benefits
Instant approval (seconds vs. days)
Dynamic rates adjust with behavior
Flexible customizable terms
Automated payment collection
Portable on-chain credit history
Primary Use Cases
Personal loans
Business term loans
Working capital lines of credit
Equipment financing
Real estate mortgages

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