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Tradeteq Expansion Seeks To Simplify Trading of Private Debt Between Banks and Investors

Tradeteq expands into private debt and real assets in pursuit of easing trading between banks and investors. 

Tradeteq, the technology provider for securitisation-as-a-service and bank asset distribution, is expanding into private debt and real assets to help banks, other asset sellers and institutional investors overcome the barriers to trading instruments. Its expansion is to focus on existing barriers regarding direct lending, infrastructure and real-estate debt.

There currently exists some $3.5trillion of private debt and real assets under management globally. However, despite this impressive figure, such instruments aren’t easily traded or transferred. This, as Tradeteq explains, is due in part to limited investor access and cost barriers.

For asset sellers, such as banks, non-bank originators and lending platforms, for example, establishing the infrastructure can be both time-consuming and expensive.

While such instruments can be repacked into funds by traditional asset managers, investors on the other hand continue to incur the high operational costs associated with manual workflows.

Since its inception in 2016, Tradeteq has assisted banks in the $1.7trillion trade finance gap – the shortfall in global lending – by securitising and distributing their trade finance assets to investors.

Recognising the market’s needs, Tradeteq’s primary issuance platform is now available for additional forms of private debt.

Addressing barriers to entry

Tradeteq’s workflow automation and securitisation-as-a-service work to turn private debt into tradable financial instruments; in turn enabling wider investor uptake.

Real-time processing and standardised repackaging of assets consequently reduce friction costs and result in higher investment yields.

Tradeteq issues these instruments to investors off-chain, as traditional capital markets products and notes. Additionally, the instruments are also available on-chain, as regulated security tokens using distributed ledger technologies.

Tradeteq’s products include the ‘ACCESS LITE‘ marketplace for buy-side investors to participate in the secondary trading of trade finance assets, and ‘DISTRIBUTE‘, which automates distribution workflows. Participants can now leverage these platforms for a wider range of private debt and real assets.

Tradeteq private debt
Christoph Gugelmann, CEO, Tradeteq

“Over the past six years, we’ve been working with global banks, asset managers and credit insurers to help turn trade finance into a liquid asset,” confirms Tradeteq CEO, Christoph Gugelmann.

Gugelmann recognises that the same challenges, including lack of investor access and automation, apply equally to many other forms of private debt and real assets.

“That’s why, having built the infrastructure to connect participants and automate workflow, we’re expanding our reach and our mission to unlock the future of these markets.”

Author

  • Tyler is a fintech journalist with specific interests in online banking and emerging AI technologies. He began his career writing with a plethora of national and international publications.

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