Layer-1 blockchain venture arm XDC Network said on Wednesday it had acquired Contour Network, a digital platform designed for banks to streamline trade financing with blockchain rails.
Contour was originally backed by large banks such as HSBC, Citi and Standard Chartered, but struggled to scale and closed at the end of 2023. Under XDC’s ownership, it will restructure with a new injection of capital, a renewed strategy and a focus on integrating stablecoins into real-world business processes, XDC said in a press release shared with CoinDesk.
The firm 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 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 projected.
XDC Network, an Ethereum-compatible Layer 1 with two-second settlement times and ISO 20022 messaging support, is positioning 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 finance.
“Banks need settlement mechanisms, treasury optimization and compliance frameworks,” said Ritesh Kakkad, co-founder of XDC Network and XDC Ventures. “We are building all three.”
Contour specialized in digitizing Letters of Credit, a type of financial instrument that banks use to guarantee commercial agreements. In past live operations, Contour’s system helped reduce 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 settlement in real-time. 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 introduced a Stablecoin Lab to run pilot programs targeting banks and enterprises. These pilots will test how regulated stablecoins like Circle’s It can be used to settle business transactions on a blockchain more efficiently than traditional rails.
Read more: Brazil’s VERT Capital to tokenize $1 billion in real-world assets on XDC network
