The venture arm of layer-1 blockchain XDC Network announced Wednesday that it has acquired Contour Network, a digital platform designed for banks to streamline trade finance with blockchain rails.
Contour was originally backed by major banks like 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 a new capital injection, a revamped strategy and a focus on integrating stablecoins into real-world business processes, XDC said in a press release shared with CoinDesk.
The company did not disclose the acquisition 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 per year in trade finance alone by automating processes with smart contracts and programmable digital payments on blockchains, according to a report from Ripple and BCG from earlier this year.
XDC Network, an Ethereum-compatible layer 1 with two-second settlement times and ISO 20022 messaging support, is positioned as a hub for the tokenization of real-world assets. 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 mechanisms, cash flow optimization and compliance frameworks,” said Ritesh Kakkad, co-founder of XDC Network and XDC Ventures. “We’re building all three.”
Contour specializes in the digitization of letters of credit, a type of financial instrument that banks use to secure commercial transactions. In past live transactions, Contour’s system helped reduce processing times from days to hours, the company said. By 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 United States, European Union and Asia as part of its next phase, XDC said.
With this acquisition, XDC Ventures also unveiled a Stablecoin Lab to run pilot programs for banks and corporations. These pilots will test how regulated stablecoins such as Circle’s can be used to settle commercial transactions on a blockchain more efficiently than traditional rails.
Read more: Brazilian company VERT Capital to tokenize $1 billion in real-world assets on the XDC network
