MineHub Technologies Inc. and Kimura Capital LLP announced they have agreed to form a joint venture to develop a solution which will enable investors to syndicate their capital in providing trade finance to commodity supply chains. The Syndication Application will leverage the MineHub blockchain platform and the recently launched MineHub Trade Finance and ESG applications to respectively reduce the credit risk and verify the ESG compliance. The Syndication Application will provide investors with exposure to a high yield, relatively low risk, but traditionally difficult to access asset classes.

Investors with sustainable or impact investment goals can verify the compliance of the transactions with their ESG criteria certified on the underlying blockchain platform. The syndication of capital will increase the volume and size of the qualifying transactions that can be financed, and as such provide working capital into supply chains, including those that contribute to raising ESG standards. The Syndication Application will match the credit risk attributes and ESG credentials of qualifying transactions with the pre-defined investment criteria of qualified investors, as well as coordinate the pooling of their capital commitments into a joint financing of the underlying transactions.

The risk and ESG compliance of the transaction will be underwritten by a specialist originator who will also coordinate the funding, disbursement and repayments. MineHub will develop the application and provide its technology under license to the joint venture. Kimura will be the first originator and brings its expertise, licensing and network of customers and co-financiers to jumpstart the liquidity on the platform.

The venture's operations will be fully segregated from Kimura's regular business, enforced by the privacy guarantees of the underlying blockchain technology.