XDC Network Acquires Contour to Enhance Stablecoin Integration in Trade Finance

XDC Network's Strategic Acquisition of Contour

XDC Network, a layer-1 blockchain, has acquired Contour Network to revolutionize trade finance by integrating blockchain technology. Contour, initially backed by major banks like HSBC and Citi, faced challenges scaling and ceased operations in late 2023. Under XDC's leadership, Contour will undergo restructuring with fresh capital and a focus on incorporating stablecoins into trade processes, according to a press release shared with CoinDesk.

Unveiling New Opportunities in Trade Finance

While the acquisition price remains undisclosed, this move aligns with global financial institutions' increasing interest in blockchain for real-world asset tokenization and stablecoin settlements. A report by Ripple and BCG highlights potential savings of billions in trade financing through blockchain automation.

XDC Network, compatible with Ethereum and offering rapid settlement times, aims to become a hub for asset tokenization. Partnerships with Circle, Deutsche Telekom MMS, and Securitize, alongside integrations with frameworks like MLETR and R3 Corda, support its cross-border finance goals.

Streamlining Trade with Blockchain

Contour specializes in digitizing Letters of Credit, reducing processing times from days to hours. XDC plans to leverage this platform for comprehensive digital trade finance solutions, from documentation to real-time settlement. Testing with regulators in the U.S., EU, and Asia is planned for the next phase.

Introducing the Stablecoin Lab

Alongside the acquisition, XDC Ventures announced a Stablecoin Lab to pilot programs with banks and corporates. These pilots will evaluate the efficiency of regulated stablecoins like Circle's USDC in settling trade transactions on blockchain platforms.

Further Reading: Brazil's VERT Capital to Tokenize $1B in Real-World Assets on XDC Network