Latest news with #TrustInLimited
Fintech News ME
05-08-2025
- Business
- Fintech News ME
Qatar Central Bank Approves TrustIn Limited for Fintech Sandbox
Qatar Central Bank (QCB) has granted TrustIn Limited approval to join its fintech Regulatory Sandbox, supporting efforts to develop a modern, secure financial services landscape. TrustIn Limited is a UAE-based fintech company offering a digital escrow platform intended to facilitate secure and transparent transactions across various sectors. The platform seeks to build confidence in online business transactions while contributing to the broader digital transformation of Qatar's economy, according to IBS Intelligence. With this approval, TrustIn Limited becomes an authorised participant in the fintech Sandbox, allowing it to test its services within a regulated, controlled environment under QCB supervision. Although sandbox participation does not equate to full regulatory licensing, it is a key step in the process towards market readiness and compliance. A spokesperson for Qatar Central Bank said: 'QCB remains steadfast in its commitment to enabling a robust and secure FinTech environment that fuels economic diversification and aligns with Qatar's vision for financial sector advancement. By supporting initiatives like TrustIn's Digital Escrow Platform, we aim to nurture solutions that prioritise customer protection, transparency, and sustainable growth.' The platform is expected to help reduce transaction-related risks and increase confidence in digital payment and contracting systems. TrustIn Limited notes that its solution has been developed with regulatory compliance and user safeguards in mind, incorporating both local requirements and global standards. During the sandbox phase, TrustIn Limited will continue working with QCB and other stakeholders to further refine its services. The company also aims to support Qatar's ambition to become a regional fintech hub by offering secure, innovative, and Shariah-compliant digital financial solutions.
Forbes
28-07-2025
- Business
- Forbes
Beyond Letters Of Credit: The Rise Of Digital Escrow In Global Trade
Parvez Siddiqui is cofounder of TrustIn Limited, a regulated and global digital escrow platform, and an advocate for inclusive finance. A textile exporter in India negotiates a deal with a buyer in the UAE. A Ghanaian agribusiness attracts interest from a wholesaler in Dubai. Yet, even as opportunities arise, uncertainty remains. Trust is the missing currency. Without established relationships or institutional guarantees, deals struggle. This trust dilemma is a recurring theme for small- and medium-sized enterprises (SMEs) navigating the global trade landscape. Many are excluded from traditional instruments such as letters of credit (LCs) or discouraged by their cost and complexity. In dynamic corridors like India-UAE and Africa-Gulf, I've noticed that the lack of fast, reliable trust mechanisms can disproportionately impact SMEs, which are often the businesses that drive innovation and employment in emerging economies. As noted by the World Trade Organization, SMEs often face higher barriers in accessing trade finance compared to larger firms, especially in developing countries, which can severely limit their participation in global markets. Why Letters Of Credit Are Falling Short The letter of credit has been a backbone of secure trade for over a century: Since being standardized by the International Chamber of Commerce in 1933, it has evolved into a globally trusted instrument. Organized through banks, it guarantees payment to the seller upon meeting specific conditions, usually associated with shipping documents. In theory, this provides peace of mind for both parties. In practice, however, LCs fall short of being frictionless. The documentation process can be extensive, the fees high and approvals often depend on previous credit relationships. Minor clerical errors can delay or invalidate payment. Furthermore, LCs are not well-suited for smaller transactions or recurring trade, which are the types most SMEs rely on. This challenge is intensified in emerging markets. Banks may require collateral, impose exorbitant issuance fees or outright reject SME requests. For a $15,000 shipment, a traditional LC may be impractical. This forces businesses to either demand full upfront payment, risking the deal or operate on an open account, exposing them to potential default. The Rise Of Regulated Digital Escrow A new model is emerging to address this gap: regulated digital escrow infrastructure. A digital escrow platform serves as a neutral third party. The buyer deposits funds into a secure account; the seller fulfills the agreed-upon terms, such as delivery or service completion; then the funds are released. If disputes arise, the funds remain in escrow until a resolution is reached. It signifies structured trust, not blind faith. This model offers three significant advantages: • Speed: Setup is quick, often completed within hours, without lengthy bank negotiations. • Affordability: Fees are usually lower than LCs and are often shared between the parties involved. • Accessibility: It is suitable for deals of all sizes and does not depend on creditworthiness. That said, digital escrow isn't entirely risk-free, especially when the provider isn't properly vetted. Key risks include: • Weak Compliance: Some platforms may skip KYC or AML checks, increasing exposure to fraud. • Poor Data Security: Lack of encryption or regulatory compliance can put sensitive information at risk. • Limited Dispute Resolution: Inadequate mechanisms can leave parties at a disadvantage if issues arise. • Jurisdictional Issues: Without proper licensing, cross-border enforcement becomes significantly more challenging. These risks underscore the importance of collaborating with regulated providers, who are licensed by financial authorities such as the Financial Conduct Authority (FCA) in the U.K. or the Monetary Authority of Singapore (MAS). Such regulation ensures that trust, compliance and protection are built into every transaction. From Trade Hub To Trust Hub Dubai's strategic location has long established it as a global logistics hub. It is increasingly positioning itself as a digital trust center, facilitating commerce among South Asia, Africa, the Gulf and Europe. In corridors like the India-UAE route, digital escrow enables SMEs to engage in CEPA-driven trade confidently. A spice exporter in Kerala can accept a new buyer in Dubai without concern of non-payment. A UAE-based retailer can test inventory from Ghana, knowing their funds are secure. Escrow-based models are equally advantageous in the Africa-Gulf trade. A cocoa cooperative in Ivory Coast or a coffee processor in Ethiopia—both previously excluded from traditional trade finance—can now conduct transactions with clear, regulated protection. This isn't just a theoretical change. Digital escrow is already being adopted across sectors: agriculture, services, capital goods, e-commerce and more. As use cases grow, these tools are proving to be more than a temporary fix. They function as modern trust infrastructure—essential to trade, just as ports and customs systems are. Designing For The 21st Century Deal Unlike LCs, digital escrow allows for milestone-based releases. For instance, a technology supplier may receive 30% upon signing the contract, 50% upon delivery and 20% after successful implementation. This flexibility reflects the operations of modern businesses. Additionally, real-time tracking and integrated compliance tools enable the buyer and seller to monitor the transaction at every stage. This transparency can alleviate anxiety and speed up deal cycles. Regulated escrow also does not tie up credit lines. Because the buyer pre-funds the transaction, the seller can often use that proof of escrow to secure working capital. This dual benefit, protection plus liquidity, can be invaluable to SMEs. A Future Built On Embedded Trust As global trade evolves, the infrastructure supporting it must also evolve. Traditional instruments, such as LCs, will continue to serve large-scale and high-risk deals. However, regulated escrow could offer a quicker and fairer alternative for the growing volume of SME-driven, mid-market and digital-first trade. This transforms the equation for SMEs across India, Africa and the Middle East. Trust no longer has to be a barrier to scaling. Instead, it becomes essential, supported by smart policy, neutral technology and forward-thinking regulation. As trade corridors become more interconnected, I think regulated digital escrow is quietly establishing itself as the standard framework for trust-based payments, unseen yet transformative. Trust may still be earned in the forthcoming global economy, but now, it can also be engineered. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
