In foreign trade, escrow is used to ensure the security of both parties in a transaction and protect their interests. During a contract or transaction involving two or three parties, the payment related to the transaction is held in a secure account opened at a bank or with a third party or institution until the transaction is completed. Coimex provides traders with this secure trade and payment environment through blockchain infrastructure.


What is Escrow?

Escrow is a system where digital buying and selling transactions are securely held until it is confirmed that the transactions have been correctly and appropriately completed. In Turkish, Escrow translates to “emanet,” which means entrusted. Escrow is one of the most common solutions in foreign trade today.

Escrow in Foreign Trade


An Escrow agreement is a three-party legal relationship involving the ‘transferor,’ ‘transferee,’ and ‘escrow holder.’ According to this legal relationship, the transferor, who undertakes to deliver a specific product or perform a task, is obligated to make a payment to the transferee in return. The role of the escrow holder is to ensure that payments between the parties are made after the other party fulfills its obligations.

In international trade, a company selling goods and services wants to receive payment as quickly as possible. Importers buying goods and services want to make payments to exporters after buying and selling the product. The most advantageous approach for the exporter is to sell the goods for cash upfront, while for the importer, working on an open account and making payments after selling the goods is the least risky payment method. Between these two methods, there are various payment methods such as letters of credit and document against payment that aim to reduce the risks for both the importer and exporter.

To sustain a presence in global trade, be successful, and compete, companies must not only strive to deliver high-quality products and services to the market at competitive costs but also provide attractive payment methods to importing firms.

Escrow in Cryptocurrency World


In the world of cryptocurrency, escrow works as follows: Investors use the escrow method to store their assets rather than keeping them in a cold wallet. This allows investors to more easily invest in exchanges with high trading volumes and security levels.

Advantages of Escrow Account in Foreign Trade

Escrow contracts have been widely used in the United States since the 1850s.

In these contracts, payments are secured by being transferred to an independent third party. Payment is made once the obligations are fulfilled. This is particularly useful when working with new clients or dealing with high product demands.

Operation Principle of Escrow Account


An escrow account is used to ensure the security of two parties in an agreement and protect their interests. During a contract or transaction involving two or three parties, the payment related to the transaction is held in a secure account, either at a bank or with a third-party individual or institution, until the transaction is completed.

For instance, during a purchase and sale of goods, an escrow account prevents one party from being disadvantaged by preventing payment before the arrival of the goods or the sending of goods before payment. Escrow accounts are much more practical in terms of procedures and required documents compared to letters of credit. Moreover, unlike letters of credit, which involve multiple banks, escrow transactions can take place under the guarantee of a single bank, and the opening of escrow accounts, especially within the customer’s own bank, is much faster.

Escrow involves the payment-making party, the documents specified in the contract, and the confirmation of the delivery of goods or services being held as a third-party neutral organization in the bank’s guarantee until approval is obtained. This ensures that the assets to be transferred are secured for both parties during the transaction. The buyer, referred to as the “Depositor” who transfers the financial asset to the escrow account, creates a “secure account” tied to the agreement by opening an escrow account according to the terms of the contract. The buyer is then added to this account by the bank. When the terms specified in the contract are fulfilled by the buyer, who will be entitled to the financial asset, the bank transfers the asset in the escrow account to this party with approval.

Usage of Escrow in Foreign Trade and Its Comparison with Letter of Credit

In international trade, purchase and sale contracts are widely used today. The crucial point for both parties in transactions conducted abroad is to ensure the highest level of payment security. The three most commonly used financial procedures to ensure payment security in international trade are letters of credit, performance bonds commonly used in Turkey, and escrow accounts more widely used abroad.

The use of an escrow account in foreign trade protects both the buyer and the seller. This method safeguards financial assets with a neutral third party within the context of an agreement. However, as the fee transfer occurs when specific conditions are met, it significantly reduces risks and streamlines the process.

In summary, the organization providing escrow services, typically a bank, receives financial assets from the buyer as the first step. The organization, often a bank, notifies the buyer that the assets have been received and transferred to the escrow account. Subsequently, the seller delivers the goods to the buyer as agreed in the written contract. The organization providing escrow services can monitor this shipment, providing assurance for the entire procedure. Thus, when the goods reach the buyer, the organization holding the escrow account has direct information about the delivery. The buyer has a specified period, as agreed in the contract, to conduct inspections after the goods have been delivered, reporting whether the goods have been delivered in compliance with the contract. Following a positive report from the buyer, the escrow account manager transfers the previously deposited financial asset to the seller’s account, completing the trade under the guarantee of a neutral financial institution.

The bank that opens and manages the escrow account typically charges a fee for this service. This fee is usually a percentage, often around 1% or 2%, as requested by the bank. The contract should specify who will cover this fee. Either the buyer or the seller, or both parties equally, must pay this fee as determined by the financial institution for the opening and management of the escrow account. The fee paid to the financial institution for this service is often more economical compared to using a letter of credit.

The use of an escrow account offers a highly beneficial alternative for both the buyer and the seller. It is particularly useful when the buyer’s credit rating appears insufficient, trust cannot be established, or when there is uncertainty in these regards. Escrow is also valuable when the buyer is a new customer or has not conducted similar commercial operations in the past, providing a secure method.


Apart from these, in periods and situations where the seller’s product is in high demand, and if there are too many buyers for the product, the escrow account provides a guarantee for both parties. Finally, in situations where the political and economic situation in the buyer’s country is risky, the use of an escrow account becomes an important assurance.

In summary, in foreign trade, escrow provides assurance for the parties involved in global trade in situations where there is doubt about the buyer’s payment or suspicion about the seller’s fulfillment of the shipment.

When creating an escrow account, the management of the process will be in accordance with the escrow agreement prepared by the parties. Therefore, the parties can mutually add the desired clauses to the escrow agreement. Thus, escrow accounts offer a more flexible structure for both parties compared to letters of credit.

Once the agreement is signed between the two parties, it becomes legally binding. To make changes, corrections, or additions, these must be done in writing in accordance with the contract procedure. The escrow account manager should not accept instructions that are not included in the contract and are given to them later. It is not mandatory for the entity providing the escrow service to be a bank; reliable trade organizations can also provide this service.

Advantages of Escrow in International Trade

Using escrow in foreign trade reduces the risk of fraud. The operation of the escrow system works as follows: For example, after reaching an agreement digitally on the escrow platform, the buyer deposits the payment for the product into the escrow account. The seller receives confirmation from escrow that the money has been received, and after this confirmation, the seller sends the product to the buyer. After the buyer confirms that the product has been received, escrow releases the payment to the seller. All these transactions take place online, and a commission fee is paid to escrow for the services rendered. Unlike other online payment methods, escrow allows for large amounts of money flow and charges a modest commission.

In addition, some B2B websites have started to process payments through their own platforms. Here, similar to individual e-commerce, the payment does not transfer to the seller until the buyer receives the product, and the payment is only transferred to the seller’s account when the buyer gives approval.

In recent years, payments with digital (crypto) currencies like Bitcoin have also become prominent. Digital currencies, which have their exchanges and can be produced by individuals, can be preferred as a means of payment by disadvantaged countries due to situations such as war, economic embargoes, etc. In addition, escrow payment systems also support transactions conducted with digital currencies. Online payment methods seem practical and less costly.

Escrow accounts, which are more cost-effective and practical compared to letters of credit, are widely used in many European countries and the United States. However, in our country, banks have not yet widely adopted escrow accounts in international product trading contracts. When managed with an escrow agreement that includes sufficient guarantees, escrow accounts are a highly secure payment method. The escrow account system can be preferable in international, and even national, trade. Choosing escrow for the payment of many commercial product purchase and sale contracts is not only practical in terms of time and effort for both the buyer and the seller but also provides significant guarantees to the parties involved.

Coimex provides this secure trade and payment environment to traders with a blockchain infrastructure. Coimex’s blockchain solutions, especially in insecure geographies and countries where foreign currencies and payment methods are not widely accepted, enable traders to conduct trade more securely and conveniently.

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Currently, the time loss during a SWIFT transaction to transfer money between countries is so long and obviously damages the business. The time loss causes results in many problems. Sometimes the time loss is so long that it can exceed the time that would have passed while physically transferring the money from one country to another.

When holidays, weekends, national days, working hours, time zone differences, and suddenly coming-up issues in financial corporations (transaction limitation per day, reaching the quota of foreign currency, announcement of bankruptcy etc.) are considered; SWIFT can result in the exploitation of factors of production and business. Being this sensitive to all these factors turns trade into a vulnerable entity.

At the age of technology, the mobility of SMEs (small merchant entrepreneurs) is taken away by high transactions alongside with the capital pledges in the SWIFT system; at times that SMEs need the money the most! Entrepreneurs from less developed countries are the least solid actors in this competitive market and SWIFT procedure wipes out these entrepreneurs from the system and eventually, from the sector.

SWIFT is unpractical in two ways. First, instructions and the data entry are done manually and second, data storage can be problematic, considering that most of the transaction volumes are high. Therefore, there is an increasing need for message creation, processing and transmission in SWIFT to be automatized. The graphic below demonstrates the financial intermediaries that must be confronted in order to apply SWIFT. Problems that have been mentioned above occur at each of these steps.


In conclusion, there is one question left unanswered: “To SWIFT or not to SWIFT?” The decision is yours.

Recent news about the cryptology and Blockchain technology are highly pleasant. According to the article that was published by, about 42% of the World’s Best Colleges are offering courses related to cryptology and Blockchain Technologies. Aside from the student associations that set their hearts on Blockchain and crypto world and the workshops they arrange; it is a true breath of fresh air that now universities like Stanford, Harvard, National University of Singapore and many more do recognize the potential of such technologies and invest in them. The promising future of Blockchain technologies and crypto industry makes us, the Coimex team; put our hearts and souls into our dream more eagerly than ever.

What is more, over 25% of the students –regardless of their major- said that they would like to take more courses related to Blockchain and crypto. This indicates that the young generation is well aware of the fact that Blockchain technologies and crypto industry are highly promising and no matter what the industry they work in is, these technologies will definitely a part of their lives.

– and the inevitable rise of cryptology makes Coimex Team happy and proud )

As an organization that brings a fresh breath of air to the international trade sector, Coimex is undoubtedly revolutionizing the current system. Coimex Foundation, on the other hand, provides the members with support and network. As the members of a decentralized autonomous organization, Coimex Foundation members meet with probable customers and business partners among the community. Members and their work will be introduced to the community and community members have equal right to approve that trader’s membership to the foundation.

What Coimex foundation brings along is a huge community and a network of traders; importers and exporters. Therefore, members get to find customer among the foundation. Coimex Foundation member traders do not feel the stress of having to meet with people from the sector because they are already involved in a community of people from the trade sector.

What lacks in the sector currently is a transparent rating system among companies and this is how Coimex solves this problem: with democracy! Trading members get to evaluate each other, which is stored on blockchain, and as a result; the system provides a transparent and objective evaluation of Coimex Foundation members. Since the rating cannot be intervenied and completely transparent and real; Coimex Foundation members get to make more accurate choices in terms of business patnerships.

Attendees of trade business come across with many problems. Intermediary figures can be said to be the main reason that traders face up with callosity when they are doing business.

Blockchain technology is known for its neatness. Blockchain technology is the ultimate method for the fastest Money transfer. Furthermore, blockchain technology is highly secure; once a process is encoded on the chain, it is impossible to be changed or deleted. Plus, a digital receipt of a money transaction is immediately restored on the system; having documented every single step that has been taken during the business. Since the digital receipt is automatically stored, the need for the attestation of or extra fees to be paid to a third-party figure is eliminated.

The paper flow that is required in the traditional way of doing business is a real burden every single figure that is involved in trade. Paperwork and physical document transfer are two distractions that slow down the business. Furthermore, documentation and paperwork take too much time and effort as if they are not just a step but the action itself.

Currently, traders that are the actual agents of trade are positioned to obey third-party figures who demand money and interrupt the business. This inequity results in an unfair distribution of the overall profit.

In conclusion, the nature of trade requires it to be engaged with blockchain technology, which can serve as the best model ever to result in with the benefit of traders; without giving credit to any third-party figure.

The purpose of Coimex is to ease the way of trade by adapting the revolutionary blockchain technology to the needs and deficiencies of international trade sector.

Trade is not an easy business; the procedures take so much time that importer and exporter parties need to pay high amounts of fees and they might even have to bribe intermediaries to pave the way for the trade itself. Doing business and profiting are the main motivations of (international) traders and this is why they are trying to keep up with the existing unfair conditions of the market.

Coimex, however, is completely against to any sort of exploitation and trade-irrelevant fees that have nothing to do with the functioning and operational requirements and yet results in a trader being victimized at the end.

Here is how it goes; taxation is subject to smart contracts that are arranged and regulated by Coimex, including the legal disclaimers and conditions, together with the recording feature of Blockchain technology, which can be used as a voucher for those seeking a solid proof of previous transactions.

Extra fees that traders, both importers and exporters, come up with and have to pay during business procedure are listed below.

Transaction fee is the commission that is taken per transaction by intermediaries and it is high especially if the Swift procedure is involved as well. Why do we need to have a break at every single stop and pay for it while we can just keep going non-stop and keep the money in our pockets?

Documentation fee is another financial burden for traders since it must be paid for the documents of/about the products or services that are subjected to trade.

Shipping costs apply both for the products and the documentation (the bill of lading). Shipment of the products is another thing but shipping hard copy documents between countries and even continents is completely behind the requirements of the contemporary era. It not only costs money for traders but also sounds absurd; having such technological advancements and still posting documents and waiting for them to be back for extended periods of time is literally wasting sources and potential.

Here comes in the ground-breaking Blockchain Technology and it allows peer to peer transactions. Coimex will arrange and provide smart contracts that not only seek for the satisfaction of both parties but also consider and protect the legal rights of all the actors that are mentioned in the agreement. Governmental obligations are taken into account and these smart contracts claim taxation as well. In this sense, it is seen that the system is legal and takes trade laws into account. In the end, since the taxation has been completed as well, the business takes place legally. Since all the documents will be digitalized and uploaded to the system, documents will no longer be physically shipped, and shipment costs will be eliminated. QR codes that are offered by Coimex are very helpful in digitalizing and keeping trach of the documents while reducing extra costs.

Once again, the unpractical document-shipment process will become history. Traders will no longer feel the need for a witness or any third-party during documentation in order to sustain trust and solidity; thank to Blockchain Technology and its decentralized structure. Coimex is the first institution ever that makes use of blockchain technology in such a useful way and easing the way of international trade by providing receipt through this revolutionary technology.

Trade has always been here throughout the history of humankind. Although he way it is done and through what have changed over time, but trade has always been here. IT started with barter and came up until money. Its medium is now evolving to something else; blockchain!

Ever since trade has overcame countries and continents; excepts for politics and non-trade-related instabilities. In the meantime, traders get to put up with or undergo through a huge number of barriers and overwhelming processes.

The first and probably the most important one is the time loss importers and exporters have to put up with and make up for while waiting for certain processes to be completed. One of these processes is the swift procedure.

Money transaction between the exporter and the importer takes a lot of time since there are a number of intermediary institutions that actualize the transfer. As Coimex, we aim to reduce this time to even minutes since the money transaction will be done between the trading parties; without any third person or institution involved.

Another process that causes the time loss is the transfer of documents. Contracts and related documents with the details of the business to be done come and go between trading parties; they are being physically mailed and this takes a long time since it is countries and continents that we are talking about. It is hilarious that we are so advanced in technology as humankind and yet, the documents are still physically transferred from one place to another. Why not make use of something you have come a long with and can actually ease your way out of hardship. On Coimex platform, there is a section that enables trading parties to transfer the documents with privacy. The documents will be encrypted in the blockchain and the parties will have access through QR codes that they will be given by the system.

Meanwhile, the goods keep waiting in a place and this costs storage and money and even the loss of the goods itself because either the documents are “on their way” or the money transaction has not made yet because of the intermediary figures it travels through. With Coimex, however, the goods will ne longer be damaged or be burden to the exporter as kept waiting until certain processes are over.

Coimex sees what traders have to put of with and wants them to deal only with the business itself while eliminating the bothering and time-consuming processes that cause traders to lose money as well. The future is bright with Coimex!

Owner of many patents, U.S. multinational IT company IBM has applied for a patent in making use of blockchain technology in aiding scientific research and keeping the records and results on the chain in the meantime. The company aims at integrating blockchain technology and data collection with scientific research.

The company has many other patents related to blockchain technology, including augmented reality and now, their focus is on a more technical part of the business as there is not any platform that offers “requisite controls and mechanisms” to keep research findings safe & secure.

The patent application goes as “Currently, there are limited platforms that allow for sharing information about scientific research and showing transparent data collection and analysis steps,” and adds:

“Platforms that do exist, lack the requisite controls and mechanisms to allow for trustworthy data, as there are few options for ensuring that data will be resistant to modification.”

In conclusion, scientific research can benefit from blockchain technology in a number of ways; adaptations of blockchain technology are endless.

Great Lakes Science Center in Ohio, US is now accepting Bitcoin payments as entrance fee! The museum has announced that they will start accepting Bitcoin starting from the 13th of November. One of the biggest museums and education centers in the region, Great Lakes Science Center, is the third museum that accepts Bitcoin in U.S.

In addition to start accepting Bitcoin for the daily expenses of the museum, there will also be a four-day conference called “the Blockcland Solutions Conference” and the event will accept Bitcoin as well. This is seen as an opportunity to “also underscore the museum’s own innovative efforts as it supports the disciplines of science, technology, engineering and math,” according to the manager of the center, Kirsten Ellenbogen.

Ellenbogen has stated that visitors can buy tickets via cryptocurrencies and visit NASA Gleen Visiting Center.

The Museum of the Coastal Bend in Texas and St. Petersburg Museum of History in Florida as the other two museums that are accepting cryptocurrencies, but the Great Lakes Science Center in Ohio is by far the biggest and the most popular one.

According to Emirates News Agency, a “thought paper” about crypto and distributed ledger technologies was released by Abu Dhabi Securities Exchange (ADX). The paper designates the technical and operational standards that are necessary to release crypto assets and its target audience is especially the financial institutions that are shifting from the conventional asset issuance to encrypted asset issuance.

Chief Executive of Abu Dhabi Securities Exchange, Rashed Al Blooshi, has confirmed that the “thought paper” was released as a response to the growing development of blockchain technology in the region. Additionally, he stated that their regulations must keep up with the transition from old to new finance practices.

“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto-assets,” Blooshi explained. “At ADX, we embrace new and innovative technology and are always looking to capitalize on advancements in FinTech; particularly in crypto-assets to optimize the benefits we offer to our investors and stakeholders.”

Abu Dhabi is conducting a vast number of public and private digital ledger technologies projects in international trade, energy, healthcare, transportation and education and these projects are likely to issue native tokens to their stakeholders and participants, in order to prove their voting right and ownership. However, projects might face with failure if not dealt with diligence properly, since there has been downfall of many other projects in the market. Local regulators must take into consideration that the outdated regulations might not be applied on advanced Financial Technology wings such as DLT and other asset issuances.

ADX thought paper, released in cooperation with he Central Securities Depositories, can be seen as the first step in enabling maximum investor protection in the developing crypto asset market of the region.

This October, the Emirates Securities and Commodities Authority (ESCA) has announced that they are interested in introducing ICOs to capital markets. Additionally, ADX is developing an ICO trade platform as well.

The Emirates Securities and Commodities Authority is drafting the ICO regulation with the support of an anonymous international organization that is alleged to be ISSA, which also helped with the ADX thought paper.

It is encouraging for Coimex Team to see that Blockchain Technology is more seemingly coming into use in different industries all over the world. We are happy to see that people are seeing the potential in this technology and making moves to adapt themselves and their businesses to it.