Trade: PDFs & LCs

Global trade moves trillions of dollars every year, but the rails underneath it remain stuck in the past. Contracts are embedded in PDFs, settlement depends on letters of credit (LCs), and communication is buried in endless email chains. Capital gets locked in bank-controlled escrow accounts, while “on board” and “delivered” are treated as assertions backed by documents, not verified events.

This reliance on paper-based trust comes at a cost. Buyers overpay for certainty, suppliers endure long payment cycles, and working capital remains trapped until intermediaries release it. Disputes escalate because the source of truth is a document pack, not data.

EDMA rewires this process with evidence-bound milestones. Every shipment stage—whether loading at port, clearing customs, warehouse receipt, or lab assay—is captured as signed evidence by trusted systems and attestors. Once verified, that milestone mints a non-transferable Event/Milestone Token (EMT). The EMT acts as an unforgeable signal that the event has occurred.

Smart contracts tie tranche payments directly to EMTs. When an “on board” EMT lands, the first tranche releases automatically. When the “delivered” EMT is minted, the final payout flows. If no EMT is issued, no funds move. Cash flows on proof, not on promises.

Consider a copper shipment under a $5 million contract. Today, the supplier may wait weeks for a letter of credit to unlock funds, with banks holding capital hostage in the meantime. Under EDMA, verified loading at port issues an EMT, instantly unlocking the first tranche. Funds are released as the shipment progresses, freeing capital in real time while still protecting the buyer.

The result is a trading system where evidence replaces paperwork, disputes shrink to exceptions, and liquidity flows at the speed of verified events. In EDMA, trade milestones don’t just mark progress—they trigger settlement.