It is summer 2020. Banks are closing their doors to smaller commodity traders amid Basel III/IV, COVID-19, and a multitude of fraud disasters. The $1.5 trillion dollar trade financing gap rapidly expands as small and medium traders face a question of survival.
Commodity traders are asking: “Going forward, how will we be able to execute our business without reliable financing options?”
MatterSphere is here to meet those unique needs, with the right tooling for commodity traders
Trusted by traders
“An eye-opening approach to how we could get financing for ‘out-of-network’ trades (not settled via LME). MatterSphere's authentication platform makes everything so thorough and coherent. This is what we need in these uncertain times!”
Charlie | scrap metal trader | Singapore
Case study #1: Bootstrapping a new commodity desk
Recycle metals trade financing(s)
Pan Asia-based +$1m trades
"An eye-opening approach to how we could get financing for ‘out-of-network’ trades. Their authentication platform makes everything so thorough but coherent.”Learn more
Pilot #2 - Warehouse commodity finance
Metals warehouse commodity financing
"Amid recent events, both our team and our financiers wanted to have a stronger hold of our commodities in between trades. MatterSphere ”Learn more
- Lender is recently mandated to diversify into ESG-focused loans
- Needs clean record of counterparties
- Audit-ready ESG checks for covenants
- Need >60% exposure to ESG loans by end of year
ESG Loan module (environment, social, governance)
Loans tied to ESG related assets have the capacity to reduce capital costs up to minus 150 bps
MatterSphere creates an easily customizable ESG smart contract where ESG covenants can be insta-qualified.
Additionally, the lender can quickly filter all the available loans between “normal” and “ESG-focused” to help the client reach their targets as demanded by their LPs (such as the 60% ESG-related AuM exposure).
MatterSphere is the first to empower large traders with actual tools as a “financier.” While this practice currently exists, "Trader-Lenders" are never equipped with proper risk tools. Trader2Trader increases capital access through selective transparency.
MatterSphere adds Trader2Trader financing module where Large Trader, who are familiar with the real risks of a unique trade in the region, can finance the Small Trader.
The module specifically adds new layers of trade secrecy so the Large Trader (now a lender) can get attractive yield, while the Small Trader selectively reveals trade details.
- Small Trader needs financing, but for a very specialized Latin American trade
- Trade is not high risk, but is categorized as risky due to country’s political climate
- Small Trader wishes to find a lender who will appropriately price the risk to avoid eviscerating the trade’s margins
MatterSphere’s platform increases the intrinsic gross profitability of short-term commodity trade finance
Efficient loans with global reach
Increase profitability, scale, & turnover
Monitor and track collateral
Reduce collateral risks
Demonstrate ESG compliance
Expedite & automate KYC/AML processes
Decrease origination & overhead costs
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