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BlockBeats News, June 1st, XDC Network's Head of Institutional Business, Travis John, stated that the global trade finance market is estimated to be around $150 trillion, but the current industry still heavily relies on paper documents, manual review, and multiple layers of intermediaries, leading to long settlement times, high financing costs, and fraud risks.
It is reported that XDC Network leverages blockchain technology to digitize trade finance, cross-border settlements, and collateral management by putting invoices, bills of lading, and other trade documents on-chain. This helps companies reduce financing costs and improve settlement efficiency. XDC mentioned that the short-term trade financing rates for some small and medium-sized enterprises are expected to drop from a traditional channel's highest rate of about 30% to around 10%.
XDC stated that trade finance is currently a key subsector of real-world assets (RWA) and on-chain private credit, but only about $700 million of global trade finance assets have been tokenized, indicating that the penetration rate is still in its early stages. After the 2025 enactment of the "GENIUS Act," the development of compliant stablecoins will further drive the implementation of on-chain trade settlement applications.
Furthermore, XDC acquired the trade finance platform Contour Network in 2025, backed by over 100 financial institutions including HSBC, Citibank, and Standard Chartered Bank. XDC plans to integrate stablecoin settlement capabilities into the existing trade finance network.
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