Blockchain-Backed Commodity Trade

Real World Assets
On-Chain Infrastructure

FTH Trading anchors physical commodity transactions to the blockchain - creating immutable, tamper-proof records that bring institutional-grade trust to global commodity trade without sacrificing compliance.

What is RWA?

Tokenizing Physical Commodity Assets

Real World Assets (RWA) refers to physical, tangible assets - commodity inventories, warehouse receipts, trade documents, and settlement instructions - that are represented or anchored on a blockchain ledger.

At FTH Trading, we do not speculate on token prices. We use blockchain infrastructure as an audit and settlement layer - creating cryptographically verified records of trade documentation and using programmable escrow to reduce counterparty risk.

  • Not financial instruments - operational infrastructure
  • Proof-of-existence for physical trade documents
  • Milestone-based escrow release, not speculative tokens
  • Fully compliant with OFAC/AML screening requirements
  • Works alongside traditional LC/SBLC structures

SHA-256 Document Anchoring

Every deal document is hashed and anchored to XRPL/Stellar - creating immutable proof of existence without publishing sensitive content.

Warehouse Receipt Tokenization

Physical inventory in certified warehouses represented as on-chain tokens - enabling fractional financing and digital transfer of title.

Programmable Escrow

Funds held in protocol-native escrow released automatically upon cryptographically verified milestone completion.

Compliance-First Design

Every counterparty and transaction is OFAC/AML screened. RWA infrastructure does not bypass compliance - it enforces it.

Settlement Reporting

Full on-chain transaction history available as audit evidence - importable for accounting, tax, and regulatory reporting.

Smart Document Routing

Contracts, inspection certificates, and B/Ls hash-linked to deal records on-chain - replacing fragmented email chains.

Blockchain Networks

XRPL & Stellar Integration

Two proven public blockchains purpose-built for financial settlement - both integrated into the FTH deal structuring platform.

XRP Ledger

XRPL

  • Native EscrowCreate / EscrowFinish transactions
  • 3-5 second settlement finality
  • Crypto-condition (SHA-256) hash-locks
  • Time-based or condition-based escrow release
  • Document hash anchoring via transaction memos
  • Near-zero transaction costs (~$0.0002/tx)
XRPL Escrow Guide

Stellar Network

Stellar

  • Anchor network for fiat currency settlement
  • 5-second finality with PBFT consensus
  • Multi-currency: USD, EUR, AED, SGD via anchors
  • Path payment for cross-currency FX settlement
  • Claimable balances for conditional payment
  • ISO 20022-compatible payment metadata
Stellar Anchor Guide

How It Works

RWA Deal Flow

1

Deal Origination

Term Request & Compliance Screening

Buyer submits a term request. FTH compliance desk runs OFAC SDN, KYC/KYB, and FATF jurisdiction checks. All counterparties cleared before proceeding.

2

Structuring

LC / SBLC + Escrow Design

Structuring desk designs the payment mechanism: traditional Documentary Credit (LC) combined with XRPL or Stellar escrow layer for milestone release.

3

Document Anchoring

SHA-256 Hash to XRPL / Stellar

All key documents (contract, proforma invoice, SGS certificate terms) are hashed and anchored to the blockchain - creating a tamper-proof audit trail from day one.

4

EscrowCreate

Funds Locked On-Chain

Payment is locked in XRPL EscrowCreate transaction with SHA-256 crypto-conditions derived from agreed milestone events.

5

Milestone Execution

Shipment, Inspection, Discharge

SGS/Bureau Veritas inspection completed. Pre-image unlocked. Bill of Lading issued and endorsed. Port discharge confirmed. Each milestone hash-verified.

6

EscrowFinish

Funds Released to Seller

Seller provides the SHA-256 pre-image. EscrowFinish transaction executed. Funds released within seconds. Full on-chain settlement record generated.

Why On-Chain

Traditional vs RWA-Backed Settlement

Traditional

Settlement time1-5 business days (SWIFT)
Escrow providerThird-party escrow agent (fees)
Audit trailPaper records, email chains
Document integrityRelies on counterparty trust
Cross-border cost0.5-3% FX + SWIFT fees
Dispute resolutionLegal action, weeks/months

RWA-Backed (FTH)

Settlement time3-5 seconds (XRPL) / 5s (Stellar)
Escrow providerProtocol-native (no intermediary)
Audit trailImmutable on-chain hash records
Document integritySHA-256 cryptographic proof
Cross-border cost<$0.01 per transaction
Dispute resolutionCrypto-condition evidence, instant

Get Started

Ready for an RWA-Backed Deal Structure?

Submit a term request and our structuring desk will design an on-chain-backed settlement structure for your commodity transaction.