XDC Network Takes Over Contour to Boost Trade Finance with Stablecoins

XDC Network Acquires Contour

XDC Network, a blockchain platform, has taken over Contour, a digital trade finance platform that once had the backing of major banks like HSBC and Citi. Contour faced challenges and shut down in late 2023. Now, under XDC's leadership, it is receiving new funds and a strategic plan to integrate stablecoins into real-world trade.

A Shift Towards Blockchain in Trade Finance

Banks worldwide are exploring blockchain for real-world asset tokenization and stablecoin settlements. This shift could save significant costs by automating processes with smart contracts and digital payments. XDC Network, which is Ethereum-compatible and offers fast settlement times, is positioning itself as a key player in this space.

Strategic Partnerships and Innovations

XDC Network is already collaborating with major entities like Circle and Deutsche Telekom. It supports frameworks for cross-border finance and is now focusing on digitizing Letters of Credit—financial tools banks use to guarantee trade deals. Contour's system has already demonstrated its ability to reduce processing times from days to hours.

Launch of the Stablecoin Lab

With this acquisition, XDC Ventures has introduced a Stablecoin Lab. This lab will test how regulated stablecoins, such as Circle’s USDC, can enhance trade transaction efficiency compared to traditional methods. Testing will begin with regulators in the U.S., EU, and Asia.

The Future of Digital Trade Finance

The goal is to provide end-to-end digital trade finance, from documentation to real-time settlement. This could make trade finance faster, cheaper, and more secure. The acquisition marks a significant step for XDC Network in its mission to revolutionize trade finance with blockchain technology.