Global trade doesn’t fail because of demand.
It fails when counterparties don’t trust each other with capital.
Trade and B2B marketplaces sit at the intersection of money, goods, and trust.
Buyers don’t want to prepay suppliers they’ve never worked with.
Suppliers don’t want to ship goods without certainty of payment.
Platforms don’t want to custody funds or manually resolve disputes.
This is exactly where escrow belongs.
Why Escrow for Trade & B2B Platforms?
In traditional B2B trade flows:
- Buyers prepay invoices or deposits
- Sellers ship goods across borders
- Verification happens late or off-chain
- Payment disputes are expensive and slow
Letters of credit and bank guarantees exist — but they are:
- Slow
- Expensive
- Regionally constrained
- Inaccessible to smaller businesses
Trustless Work brings escrow-native trade flows to the stablecoin economy.
The Trade Capital Flow
Trade platforms operate as neutral coordinators:
- Buyer commits funds
- Funds are held while goods are produced and shipped
- Third parties verify delivery or condition
- Funds are released to the seller
The platform enforces rules — without touching the money.
How It Works
1. Initiation
When a trade order is placed, the platform creates an escrow.
Configuration includes:
- Order value and currency (e.g. USDC)
- Delivery or production milestones
- Verification requirements
- Approval and release logic
- Platform or service fees
Each trade order maps to a single escrow.
2. Funding
The buyer deposits funds into the escrow.
- Capital is locked non-custodially
- Sellers know payment is guaranteed
- Platforms avoid custody and settlement risk
This replaces prepayments and informal guarantees.
3. Production & Shipment Updates
As the trade progresses:
- Sellers update production or shipment milestones
- Documents (invoice, packing list, bill of lading) can be referenced
- Logistics providers or systems can mark shipment events
Escrow reflects the real-world state of the trade.
4. Verification & Approval
Delivery can be approved by:
- The buyer
- The platform
- Third-party inspectors
- Automated logic (timeouts, tracking confirmation)
Approval rules are defined upfront and enforced consistently.
5. Fund Release
Once conditions are met:
- Funds are released to the seller
- Platform fees are applied automatically
- Partial releases can occur per milestone
Unreleased capital remains locked and visible.
Roles in a Trade & B2B Escrow
Trade flows benefit from strong role separation:
- Depositor (Buyer) – Commits funds for the order
- Receiver (Seller / Supplier) – Receives payment
- Initiator (Platform) – Creates and manages the escrow
- Milestone Marker (Seller / Logistics / System) – Updates trade status
- Approver (Buyer / Inspector / Platform) – Confirms delivery or condition
- Release Signer (Platform / Logic) – Executes payment
- Platform Address – Collects marketplace or service fees
Escrow replaces trust with enforceable process.
Common Trade & B2B Scenarios
-
Cross-Border Procurement
Funds held until goods arrive and are verified. -
Manufacturing Orders
Partial releases tied to production milestones. -
Wholesale Marketplaces
Neutral payment layer between buyers and suppliers. -
SME Trade Platforms
Escrow replaces letters of credit for smaller players. -
Trade Finance Integrations
Escrow data used by lenders or insurers.
Building with the Product Suite
Trade platforms can start simple and scale:
- Back Office dApp – Manage early trades manually
- Escrow API – Automate trade escrow creation and releases
- Next.js SDK – Embed escrow status into buyer and seller dashboards
- Escrow Viewer – Shared transparency for counterparties
- Demo Lab – Test trade flows before production
Why This Works
- Reduced Counterparty Risk – No blind prepayments
- Faster Settlement – No bank delays or LC paperwork
- Lower Costs – Stablecoins + escrow beat traditional rails
- Global Reach – Borderless by default
- Auditability – One escrow per trade transaction
This is how B2B trade moves from trust-by-contract
to trust-by-infrastructure.
🚀 Building a trade or B2B marketplace?
Use Trustless Work to add escrow without becoming a bank or custodian.
Explore the API docs or test flows in the Back Office.
