Our Vision
CXDA Vision
CXDA has a clear vision of the future of investing in high-growth economies, in the SME sector. CXDA stands behind this vision and is already creating the Future Today.
Development of a compliant and regulated market for the securitization, and trading of financial products for SMEs, eliminating financing barriers, and attracting liquidity flows from regional and global investors, institutional and retail in the MEA region.
Leveraging blockchain and Digital Assets innovation to create a platform for the issuance, processing and later trading of debt notes for SMEs, reducing transactional friction, cost, and streamlining the trade lifecycle.
World Class Market
A world-class, regulated, liquid secondary trading market for private SME debt in high-growth developing countries, attracting global investors.
Increase Access
Increasing liquidity and access to investments in growing economies will lead to more prosperity and accelerated economic growth.
Trading for Everyone
Opening investment in SMEs in growth markets to the global community of institutional and retail investors leads to increasing financial inclusion.
Innovation
Leveraging the innovation of Tokenization and Digital Assets to offer new investment products, reduce transaction cost and friction, and minimize risk.
Competitive Rates
Leapfrogging emerging economies into the future of real time trading and execution, and opening liquidity flows into the trade sector in high growth regions.
CXDA Target Market
CXDA has identified the African and Middle Eastern financing and short-term lending markets to be a ripe opportunity where Digital Assets can create substantial liquidity flows.
SMEs – Some Statistics
SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development.
There is about 400 Million SMEs in emerging markets. 25-30 million are formal SMEs; 55-70 million are formal micro enterprises; and 285-345 million are informal enterprises.
In high income countries, SMEs contribute more than 55% of GDP and 60% of employment. These figures grow to 70% of GDP and 90% of jobs in middle income countries.
As per the World Bank estimates, there will be a need of more than 600 million jobs globally by 2030. The role of SMEs in providing such opportunities is critical.
SMEs – Statistics
SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development.
In emerging economies, Formal SMEs contribute about 40% of national income. This figure grows to 70% with Informal SMEs.
Beyond economic growth, SMEs contribute to social cohesion and local development. They facilitate local skills development, diversity, innovation and technological advancement.
SME Financial Inclusion is therefore critical for global economic growth. The developing economies of the Middle East and Africa stand to benefit of up to an additional 1% of GDP growth, if they can successfully expand the growth of the SME sector. This will result in job creation, economic diversification, and better financial stability. Many countries have recently enacted national, government and public policies to backup the SME sector, and turbo charge its growth
SMEs Challenges Access to Financing
SMEs typically rely on internal funding sources, friends and family, and internal funds. Access to bank loans is limited and prohibitive in many instances.
A yearly estimated 5$ Trillion gap in Financing needs for SMEs in developing economies
Lack of Transparency around SMEs creditworthiness
Weak Investor and creditor protection programs
SMEs in The Middle East and Africa face a gap of about 85% between potential demand / access to financing
Higher Collateral Requirements, difficult for SMEs to meet
High cost of credit, and high interest rates for loans
Opportunity & CXDA Solution
The opportunity is ripe for a permanent sustainable solution to help jumpstart the SME sector.
Opening up the SME world for funding and investment will enable rapid growth for companies in all sectors, offer investors new venues, and open new wealth creation opportunities.
The CXDA platform leverages blockchain and AI innovation, process and documentation standardization, and most importantly- deep market building experience to address the challenges of SME funding.
The Winning Formula
The platform offers a win-win scenario for investors and business owners.
Higher yields, and short-term investment returns for Investors, access to funding and credit lines without giving up equity control for business owners, larger contribution to GDP by SMEs, stronger employment and job market acceleration.
Well defined, transparent and structured rules enabling investors to participate in funding specific businesses, of their choosing.
Successful execution and building a track record for investing in SME companies, a pre-requisite for positioning developing countries on the global investment map.
Focused approach targeting risk mitigation in lending, and a narrow set of collateralized assets (e.g. Trade and Inventory Finance), as well as possible credit guarantees.
Credible institutional buyers who have their own credit and underwriting capability with sufficient scale to motivate the needed standardization, origination and scale to create the track record and momentum for wide adoption.
Use of proven financing structures that are widely accepted, particularly requiring originators to absorb first dollar losses up to 15% of the lending amount to any credit.
Standardized documentation with fully formed and robust processes for perfecting a collateral interest.
Use of blockchain to facilitate tokenization and secure documentation/payment.
The effect is to sharply reduce transaction cost and ultimately enable fractionalization which will be critical to enable buyers to assemble portfolios that are tailored to their specific risk/return objectives.
A smart and secure way to invest
The CXDA platform offers an automated, structured solution for the securitization of private debt, focusing on short duration, high yield asset-based investment opportunities, with required transparency into asset-level performance.
Get Started with CXDA
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