Layer-1 blockchain XDC Network’s venture arm said Wednesday it had acquired Contour Network, a digital platform designed for banks to streamline trade finance with blockchain rails.
Contour was initially backed by major banks such as HSBC, Citi and Standard Chartered, but struggled to scale and was shut down at the end of 2023. Under XDC’s ownership, it will be restructured with fresh capital injection, a renewed strategy and a focus on integrating stablecoins into real-world trading processes, XDC said in a press release shared.
The company did not disclose the purchase price.
The acquisition comes as global banks and financial institutions step up efforts to explore the use of blockchain rails for real-world asset (RWA) tokenization and stablecoin settlements. The process could save billions of dollars annually in trade finance alone by automating processes with smart contracts and programmable digital payments on blockchains, a Ripple and BCG report from earlier this year stated.
The XDC Network, an Ethereum-compatible layer 1 with two-second settlement times and ISO 20022 messaging support, positions itself as a hub for real-world asset tokenization. Its partners include Circle (CRCL), Deutsche Telekom MMS and Securitize, and the network has integrated frameworks such as MLETR and R3 Corda to support cross-border financing.
“Banks need settlement rails, treasury management optimization and compliance frameworks,” said Ritesh Kakkad, co-founder of XDC Network and XDC Ventures. “We build all three.”
Contour specializes in digitizing letters of credit, a type of financial instrument that banks use to guarantee trade deals. In previous live trades, Contour’s system helped cut processing times from days to hours, the firm said. Leveraging the platform, XDC aims to offer end-to-end digital trade finance from documentation to real-time settlement. The project will begin testing with regulators in the US, EU and Asia as part of its next phase, XDC said.
With the acquisition, XDC Ventures also unveiled a Stablecoin Lab to run pilot programs aimed at banks and businesses. These pilots will test how regulated stablecoins, such as Circle’s can be used to settle trade transactions on a blockchain more efficiently than traditional rails.
Read more: Brazil’s VERT Capital Tokenize $1B in Real-World Assets on XDC Network
