Lloyds Bank and trade finance platform Mercore have successfully executed a series of secondary trade transactions using digital documentation, marking a significant leap forward in trade finance innovation. The transactions involved secondary participation in an accepted digital bill of exchange (DBE), showcasing how non-digital trade participants can now engage in faster, more efficient secondary markets.
The trades were linked to shipments of sugar from Central America to a UK-based client of Lloyds. The process used a DBE drawn by the exporter and accepted by the importer. Upon confirmation from Lloyds, Mercore provided funding against the DBE.
Traditionally, secondary trades of bills of exchange rely on physical paper, often taking days to process. This digital alternative, supported by Enigio’s trace:original software, enabled near-instantaneous transactions—some completed in a matter of hours.
Surath Sengupta, head of trade and working capital at Lloyds, emphasised the milestone: “We’ve previously showcased digital flows in primary transactions, and this is a great example of extending that innovation to the secondary market. A vibrant digital secondary market can further unlock cross-border trade finance for businesses globally.”
Enigio’s software ensures digital negotiable instruments maintain all the legal and functional characteristics of paper documents—allowing for possession, transfer, and verification—while eliminating the inefficiencies of physical documentation.
Lloyds invested €3 million in Enigio in 2023, signalling its commitment to digitising global trade infrastructure.