Definition ∞ Trade finance refers to the financial instruments and services that facilitate international and domestic trade transactions. This encompasses a range of solutions, including letters of credit, supply chain financing, and invoice discounting, aimed at mitigating risks for buyers and sellers. In the digital asset space, it pertains to the application of blockchain and tokenization to these processes.
Context ∞ The integration of digital assets and blockchain technology into trade finance is a developing area, with discussions focusing on potential improvements in efficiency, transparency, and accessibility. News often reports on pilot programs and new platforms seeking to leverage distributed ledger technology for trade settlement and financing.