CrediPort, Capital4Trade and WaveBL have demonstrated a digital documentary credit structure that connects a buyer, seller and single financier, potentially allowing non-bank trade-finance providers to offer letter-of-credit-style assurance without relying on the conventional multi-bank process.

The companies announced the results on 27 October following a proof of concept using commercial and shipping documents from a transaction between Spain and the United States.

The model combines electronic credit creation, digital transport documentation and structured examination of documents through a three-party arrangement.

CrediPort manages the electronic letter of credit and document examination process, while WaveBL supplies the electronic bill of lading and secure infrastructure for presenting documents.

Capital4Trade contributes the commercial relationship, financing expertise and transaction documentation.

The demonstration involved three document submissions and two compliance examinations, including a second review after a commercial invoice was corrected.

The companies said discrepancies were identified, recorded and resolved within hours during testing on 17 September.

The structure addresses an operational challenge in traditional documentary trade finance, where banks and trading counterparties exchange documents to establish whether the conditions for payment have been satisfied.

In a conventional commercial letter of credit, the issuing bank undertakes a payment obligation, with other banks potentially involved in advising, confirming or negotiating the credit.

The proposed three-party arrangement differs by allowing a single financier to manage the documentary conditions and associated financing relationship through digital infrastructure.

That could create opportunities for non-bank financiers seeking to provide buyers and suppliers with structured documentary controls without reproducing the full operating model of a traditional bank-led letter of credit.

For sellers, faster examination of shipping documents could shorten the period between document presentation and a financing decision. For financiers, a traceable examination record may improve transaction oversight and the management of documentary discrepancies.

However, the demonstration does not establish that a live financing facility has been launched or that funds were advanced against the tested shipment.