XDC Network: The on-chain trade finance market reaches $15 trillions, aiming to promote the digitalization of global trade settlements

BlockBeats news, on June 1, Travis John, Head of Institutional Business at XDC Network, stated that the global trade finance market is estimated at around 15 trillion US dollars. However, the industry still heavily relies on paper documents, manual reviews, and multiple layers of intermediaries, resulting in long settlement cycles, high financing costs, and risks of fraud.

According to the introduction, XDC Network enables trade documents such as invoices and bills of lading to be uploaded to the blockchain, digitizing trade finance, cross-border settlements, and collateral management. This helps enterprises reduce financing costs and improve settlement efficiency. XDC said that for some small and medium-sized enterprises, short-term trade finance interest rates are expected to drop from a traditional channel maximum of about 30% to about 10%.

XDC stated that trade finance is currently a key segment of real-world assets (RWA) and on-chain private credit, but globally, only about 700 million US dollars in trade finance assets have been tokenized, and penetration remains at an early stage. After the GENIUS Act is passed in 2025, the development of compliant stablecoins will further drive the implementation of on-chain trade settlement applications.

Additionally, XDC plans to acquire the trade finance platform Contour Network in 2025, which is supported by over 100 financial institutions including HSBC, Citibank, and Standard Chartered. They aim to integrate stablecoin settlement capabilities into the existing trade finance network.