Tradeteq Expands into Private Debt to Ease Trading Between Banks and Investors

  • Trading Systems
  • 09.01.2023 02:00 pm

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 such as direct lending, infrastructure and real-estate debt.  

There is some $3.5tr of private debt and real assets under management globally but these instruments are not easy to transfer or trade due to limited investor access and cost barriers. For asset sellers, such as banks, non-bank originators and lending platforms, setting up the infrastructure can be a lengthy and expensive process. Traditional asset managers repackage these instruments into funds but investors often face high operational costs due to manual workflows. 

Since 2016, Tradeteq has helped banks tackle the $1.7 trillion trade finance gap – the shortfall in global lending – by securitising and distributing their trade finance assets to investors. Its primary issuance platform will now become available for additional forms of private debt. 

Tradeteq’s workflow automation and securitisation-as-a-service transform private debt into tradable financial instruments to enable wider investor uptake. Real-time processing and standardised repackaging of assets reduce friction costs and result in higher investment yields. Tradeteq issues these instruments to investors off-chain, as traditional capital markets products and notes, and on-chain, as regulated security tokens using distributed ledger technologies. 

Tradeteq’s products include ACCESS LITE, the first-ever 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. 

Christoph Gugelmann, CEO at Tradeteq, comments: “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. However, it’s clear the same challenges around 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.” 

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