Mercato
MERCATO turns purchase orders into programmable working capital, investors fund suppliers directly through smart contracts, and SMEs repay transparently on-chain
📍 Team Location: Argentina - Costa Rica
About the Product
MERCATO provides a trust-enforced working capital infrastructure that connects SMEs, suppliers, and investors using programmable escrows deployed through the Trustless Work protocol on Stellar.
Instead of transferring capital to the buyer, funds are locked in non-custodial smart-contract escrows. MERCATO orchestrates the deal logic, while Trustless Work handles the escrow contract execution on-chain.
This ensures capital is used strictly for production and repaid transparently.
It flows in steps like the ones above:
- Deal Structuring where an SME uploads a purchase order and defines: Supplier - Amount - Term - Milestones
MERCATO configures an escrow through the Trustless Work API, assigning the appropriate roles (approver, supplier, release signer, dispute resolver).
-
Capital Deployment (Multi-Release Escrow) where an investor funds the escrow in USDC. Funds do not pass through the SME. They are released directly to the supplier according to milestone approval rules defined in the escrow.
-
Structured Repayment (Single-Release Escrow) Where the SME repays the investor through a separate escrow structure designed for debt settlement. Repayments accumulate via structured micropayments and are finalized automatically once the obligation is completed.
The result is SMEs accessing capital without collateral-heavy banking friction. Suppliers receive milestone-based guaranteed payment, and Investors deploy capital with programmable control and transparent on-chain verification
MERCATO coordinates the financial logic, and Trustless Work executes the escrow enforcement.
Problem & Solutions
Problem
In Latin America, SMEs are trapped in a working capital paradox: they receive purchase orders, but lack the upfront cash to pay suppliers and start production.
This financing gap is driven by structural mistrust and rigid capital systems:
Deep Mistrust: Investors hesitate to lend because they cannot control how funds are used. The risk of capital diversion using financing for debt repayment instead of production is high and difficult to enforce against.
Supplier Stranglehold: Suppliers rarely extend credit and demand full upfront payment, blocking production before it begins.
Bank Exclusion: Traditional banks require excessive guarantees, formal credit history, and lengthy approval processes that most SMEs cannot meet.
Solution
MERCATO provides a trust-enforced working capital infrastructure that connects SMEs, suppliers, and investors using programmable escrows deployed through the Trustless Work protocol on Stellar.
Instead of transferring capital to the buyer, funds are locked in non-custodial smart-contract escrows. MERCATO orchestrates the deal logic, while Trustless Work handles the escrow contract execution on-chain.
This ensures capital is used strictly for production and repaid transparently.
It flows in steps like the ones above:
- Deal Structuring where an SME uploads a purchase order and defines: Supplier - Amount - Term - Milestones
MERCATO configures an escrow through the Trustless Work API, assigning the appropriate roles (approver, supplier, release signer, dispute resolver).
-
Capital Deployment (Multi-Release Escrow) where an investor funds the escrow in USDC. Funds do not pass through the SME. They are released directly to the supplier according to milestone approval rules defined in the escrow.
-
Structured Repayment (Single-Release Escrow) Where the SME repays the investor through a separate escrow structure designed for debt settlement. Repayments accumulate via structured micropayments and are finalized automatically once the obligation is completed.
The result is SMEs accessing capital without collateral-heavy banking friction. Suppliers receive milestone-based guaranteed payment, and Investors deploy capital with programmable control and transparent on-chain verification
MERCATO coordinates the financial logic, and Trustless Work executes the escrow enforcement.
Customer Segments
Productive SMEs Companies with confirmed demand and active purchase orders that lack short-term working capital to pay suppliers. They need structured financing that does not require collateral, excessive guarantees, or lengthy bank approvals — and that allows them to grow without liquidity strain.
Suppliers Manufacturers and distributors that are seeking to increase sales volume while eliminating credit risk. They want guaranteed, milestone-based payment and exposure to new buyers without extending credit or waiting for delayed settlements.
Investors (Real-World Asset Backers) Individuals or funds seeking short-term, asset-backed returns by financing real commercial transactions. They require capital control, enforceable payment structures, and transparent on-chain traceability to reduce misuse and default risk.