# MERCATO

#### Programmable Supply Chain Finance

### When a business can’t pay its supplier, everything stops.

MERCATO ensures the money arrives on time — so production doesn’t.

***

### What MERCATO Does

MERCATO turns purchase orders into **enforceable working capital**.

* Investors fund suppliers directly through smart contracts
* SMEs repay once the business cycle is complete
* Capital is controlled, not transferred

No intermediaries holding funds.\
No misuse of capital.\
No broken trust.

***

### The Problem

Across Latin America, thousands of SMEs have **real demand — but no liquidity**.

They receive purchase orders, but:

* Suppliers require upfront payment
* Banks are slow or require collateral
* Investors lack control over how funds are used

> So even with customers ready to buy… production never starts.

#### The Result

* Delayed orders
* Lost revenue
* Stalled growth

***

### The Real Issue

The problem isn’t demand.

> The problem is **trust in how capital is used**.

***

### The MERCATO Model

> Capital is not transferred. It is controlled.

MERCATO coordinates multiple infrastructure layers to enforce how money moves across a transaction.

Instead of sending funds to the SME, the system works as follows:

* Capital enters through **fiat on/off-ramps** (Etherfuse, Alfred Pay, BlindPay)
* Users sign transactions via **Stellar wallets** (Freighter, Albedo)
* Funds are locked in **non-custodial escrow contracts** (Trustless Work)
* Payments are released based on **real production milestones**
* Idle capital can generate yield via **DeFindex vaults** (when not deployed)
* All transactions are settled and verified on the **Stellar network**

***

#### Visual Model

```mermaid
flowchart LR
  Fiat --> Ramp["Ramps\n(Etherfuse / Alfred / BlindPay)"]
  Ramp --> Wallet["Wallet Layer"]
  Wallet --> Escrow["Escrow (Trustless Work)"]
  Escrow --> Supplier
  SME --> Escrow
  Escrow --> Investor
  Wallet --> Yield["Yield (DeFindex)"]
```

***

#### What This Creates

A system where:

* **Suppliers get paid with certainty**
* **Investors retain control of capital**
* **SMEs can execute real demand**

Without relying on trust between parties.

***

#### The Key Difference

> MERCATO is not just escrow.\
> It is a coordinated capital system built on integrations.

***

***

### Why It Matters

#### SMEs

Access working capital without collateral or delays.

#### Suppliers

Receive guaranteed, milestone-based payments.

#### Investors

Deploy capital into real-world transactions with control and visibility.

***

### What Makes MERCATO Different

* **Capital control, not capital transfer**
* **Milestone-based execution tied to real production**
* **Non-custodial architecture** (funds never held by the platform)
* **On-chain verification** of every transaction
* **Composable integrations** across the Stellar ecosystem

***

### What This Unlocks

* Production that actually starts
* Capital that actually flows
* Supply chains that actually work

***

### Current Status

* Testnet MVP live
* End-to-end escrow lifecycle operational
* Early SME pipeline across LATAM
* Preparing for mainnet deployment

***

### One Line

> MERCATO makes working capital enforceable.

***


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