Layer-1 blockchain XDC Network’s venture arm announced it had acquired Contour Network, a digital platform designed for banks to streamline trade finance using blockchain technology.
Originally backed by major banks, Contour struggled to scale and was shut down in late 2023. Under XDC’s stewardship, it will be restructured with new capital, a revamped strategy, and a focus on integrating stablecoins into real-world trade processes, as indicated in their press release shared with RialCenter.
The acquisition price was not disclosed.
This move comes as global banks and financial institutions intensify efforts to explore blockchain technology for real-world asset tokenization and stablecoin settlements. A report projected that these processes could save billions annually in trade financing by automating operations with smart contracts and programmable digital payments on blockchains.
XDC Network, an Ethereum-compatible layer-1 blockchain with two-second settlement times and ISO 20022 messaging support, aims to position itself as a hub for real-world asset tokenization. Its partners comprise various well-known corporations, and it has integrated frameworks to support cross-border finance.
“Banks need settlement rails, treasury optimization, and compliance frameworks,” said Ritesh Kakkad, co-founder of XDC Network and XDC Ventures. “We’re building all three.”
Contour specialized in digitizing Letters of Credit, which banks use to guarantee trade deals. The platform reportedly reduced processing times from days to hours. Leveraging Contour’s capabilities, XDC aims to provide end-to-end digital trade finance from documentation to real-time settlement. Testing with regulators in various regions will be part of its next phase.
Additionally, with this acquisition, XDC Ventures unveiled a Stablecoin Lab to conduct pilot programs targeting banks and corporations. These pilots will explore the efficacy of regulated stablecoins for settling trade transactions more efficiently than traditional methods.
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