4.7 Who are ChinaAI's competitors?
Large exporters need USD credit that is compliant, guaranteed, liquid and always on:
Before 2008, our natural competitors would have been banks themselves. However, Basel III has constrained them with regulatory capital requirements and equity limitations on risk-transfer SPVs. Indeed, banks see $BRICS as a means of capital relief and compliant governance over risk transfer vehicles.
Crypto exchanges (like Yellowcard) do not have Prudential authorisation to settle high-value cross-border b2b payments, nor can they provide 'Import Notification Numbers' to clear shipments past customs.
Crypto-loan financing platforms like Goldfinch perform a “true sale” to high-cost alternative finance providers. As a result, they are rife with moral hazards, capital control risks, and foreign exchange risks. The availability of on-/off-ramp infrastructure and liquid local exchanges also constrains their scalability.
Mobile Money FinTechs (e.g., M-Pesa) are legally capped at $600 in domestic micro-transactions.
Illegal money dealers provide fast USD, but they'll take a pound of flesh in fees, or worse disappear. The risk is untenable for large publicly traded exporters.
What's our competitive advantage? Our ability to transfer bank credit risk at will, and unlock surplus regulatory capital, enables a Just-in-Time credit and liquidity system for banks at scale:
Our tokenised CDOs trigger bank-intermediated credit, unrestricted by USD capital controls. Investor funds remain on-chain (i.e. they are not used to purchase loans as in a 'true sale') and receive a synthetic risk exposure.
A $500 million sovereign bond keeps stakeholders Basel-compliant by providing a “zero-risk weighted” credit enhancement. Moreover, the full notional guarantee cushions investor downside.
A pre-funded $10 million payout facility means exporters don't need incremental collateral to secure financing -"partner banks" pre-fund accounts using previously trapped regulatory capital.
Our secret sauce: Our tokenised vault packages the risk on bank credit receivables and sells it as a fully hedged CDO to crypto investors. This is equivalent to tokenised commercial paper, with downside protection from the state. Moreover, econometric models allow ChinaAI agents to select the “optimal” portfolio to minimise default risk for investors sustainably, even at small sample sizes. Machine Learning techniques (XGBoost, Random Forest) are used for larger datasets.
Our insight: Crypto investors aren't refinancing corporate payments; they're unlocking the trapped regulatory capital of USD-hungry banks by securitising the risk on credit receivables. Underwriters are buying governance rights over scalable credit mitigation tools while formally remaining compliant, a benefit stripped away by Basel regulations post-2008.
Last updated