> For the complete documentation index, see [llms.txt](https://docs.mercatocapital.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mercatocapital.xyz/mercato.md). # MERCATO **MERCATO transforms verified purchase orders into financeable digital assets**, enabling investors to fund real commercial transactions between suppliers and SMEs across Latin America. Rather than issuing unsecured loans, MERCATO finances verified economic activity backed by existing supplier relationships. *** ## What MERCATO Does MERCATO digitizes the commercial purchasing process before financing occurs. Suppliers manage products, inventory, pricing, and commercial terms. SMEs create verified purchase orders backed by existing supplier relationships. These purchase orders become **financeable digital assets** that investors can fund directly through the Stellar network. Once financed: * Suppliers receive immediate payment. * SMEs repay after completing their business cycle. * Investors finance real commercial activity instead of unsecured credit. ## The MERCATO Model Instead of financing businesses directly, MERCATO finances **verified commercial transactions**. The platform coordinates every participant involved in a purchase order. 1. Suppliers publish products and commercial terms. 2. SMEs generate verified purchase orders. 3. Investors finance those purchase orders using USDC. 4. Smart contracts coordinate settlement. 5. Suppliers receive payment. 6. SMEs repay once the commercial cycle is completed. This transforms working capital into programmable commercial infrastructure. *** ## Powered by Stellar MERCATO abstracts blockchain complexity while leveraging Stellar as its settlement and coordination layer. ### Embedded Wallets Privy provides embedded smart wallets, allowing businesses to access MERCATO without managing seed phrases or external wallets. ### Programmable Settlement Soroban smart contracts coordinate financing, settlement, and repayment across suppliers, SMEs, and investors. ### Capital Efficiency Idle investor capital remains productive through DeFindex yield strategies until allocated to finance verified purchase orders. ### Fiat Connectivity MoneyGram Ramps enable seamless conversion between USDC and local fiat currencies, allowing suppliers and SMEs to interact through familiar banking experiences. ### Secure Authentication SEP-10 provides secure authentication while SEP-24 enables compliant fiat on/off ramps. *** ## Commercial Workflow ```mermaid flowchart LR A[Supplier] B[Verified Purchase Order] C[Investor] D[USDC Financing] E[Soroban Settlement] F[Supplier Payment] G[SME Repayment] H[DeFindex Yield] A --> B B --> C C --> D D --> E E --> F G --> C C -. Idle Capital .-> H ``` *** ## What This Creates A financing network where: * Verified purchase orders become financeable digital assets. * Suppliers receive immediate payment. * SMEs gain working capital without traditional lending. * Investors finance verified commercial activity with transparent settlement. * Every financing workflow settles on Stellar. *** ## Why MERCATO Is Different Traditional supply chain finance focuses on financing businesses. MERCATO finances **verified commercial transactions**. By digitizing purchase orders before financing occurs, MERCATO transforms commercial activity into programmable financial infrastructure. Rather than underwriting businesses, the platform coordinates trusted supplier relationships that can be financed directly on-chain. *** ## Ecosystem Impact Every SME onboarded introduces additional suppliers, buyers, investors, and payment flows to Stellar. As commercial activity grows, so does recurring on-chain transaction volume—creating a network effect driven by real economic activity rather than speculative transactions. *** ## Current Status * Stellar Testnet MVP operational * 14 businesses onboarded in Argentina * Supplier pilot within BIMBO's supply chain in Costa Rica * Stellar Instaward completed * Preparing for Stellar Mainnet deployment *** ## Core Value Proposition > **MERCATO transforms verified purchase orders into financeable digital assets.** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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