Osaka Government Backs SBI XDC Trade Finance Project to Speed Up Export Factoring

The Osaka government has selected an SBI XDC trade finance project for public funding. The project, titled 'Building a KYB Scheme Utilizing Digital Corporate Certificates and Achieving Greater Efficiency through the On-Chain Execution of Export Factoring Transactions,' aims to reduce the time and cost of financing decisions for exporters.

The project involves the use of vLEI (verifiable Legal Entity Identifier) digital credentials, which can be verified directly by counterparties. This eliminates the need for manual review and document collection, reducing the verification process from days to a matter of seconds.

SBI XDC Network APAC, in collaboration with TOPPAN Inc. and Ginco Inc., will build the business system behind the pilot. The system will handle input, aggregation, and on-chain recording of factoring transaction data, capturing trade details alongside vLEI information for both the exporter and the importer.

The demonstration targets exporters of used vehicles and used automobile parts based in Osaka Prefecture and aims to research vLEI acquisition in one representative destination country for participating exporters. The project's goal is to make factoring decisions faster and cheaper once identity and trade data live on-chain.