“Tens of millions of small businesses in Latin America cannot access short-term credit from banks. Mercato exists to close that gap — without adding another opaque intermediary.”
The problem we solve
Working capital stuck between buyer, supplier, and investor
What is Mercato?
Mercato is a supply chain finance platform that helps small and medium businesses (PyMEs) access working capital through blockchain-secured escrow. Investors fund deals, suppliers receive milestone payments, and every transaction settles in USDC on Stellar — transparently and without a bank in the middle.
Why we built it
Without credit, PyMEs cannot pay suppliers upfront. Suppliers wait 60–90 days. Buyers miss sales cycles. Growth stalls. We built Mercato to break that cycle by connecting PyMEs directly with investors through rules-based escrow everyone can verify.
Who Mercato serves
Three sides of the same purchase order — each with a clear job in the flow.
PyMEs (buyers)
Short-term capital to pay suppliers while waiting for their own sales to close.
Investors
Transparent, deal-specific returns backed by real trade — not abstract market bets.
Suppliers
Partial payment at shipment and delivery instead of waiting months for invoices.
How Mercato works
A milestone-based cycle secured by non-custodial smart contracts on Stellar.
- 1
Deal setup
The PyME describes the purchase, sets the term, and splits supplier payment into milestones.
- 2
Escrow deployment
A non-custodial escrow is deployed via Trustless Work. The PyME signs with their wallet.
- 3
Investor funding
Investors commit USDC into the escrow from the marketplace. Funds stay locked until milestones release.
- 4
Delivery & releases
As the supplier delivers, the PyME approves milestones and the contract pays the supplier on-chain.
- 5
Repayment
At term end, the PyME repays investors their principal and agreed yield.
Why blockchain escrow?
Fund movement is transparent, auditable, and rule-bound. Neither Mercato nor any single party can move money outside the contract logic. Every release is triggered by milestone approval and settled in seconds.
- Non-custodial — your wallet, your signature
- Milestone rules enforced by code
- Public, auditable settlement on Stellar
- USDC stability for cross-border trade
Common questions
Is Mercato a bank?
No. Mercato is a platform that coordinates deals. Funds sit in smart escrow contracts, not in a Mercato bank account.
Who can use Mercato?
PyMEs creating purchase orders, suppliers fulfilling them, and investors funding escrows — primarily across Latin American supply chains.
What currency is used?
Deals settle in USDC on Stellar, a dollar-pegged stablecoin, reducing FX friction in regional trade.
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