In the ever-evolving landscape of blockchain technology, the XDC community continues to make significant strides, particularly in revolutionizing trade finance and real-world asset tokenization. Celebrating its fifth anniversary, the XDC Network stands as a testament to XinFin’s vision to digitize finance through innovative solutions. Furthermore, as the network gears up for future advancements with XDC 2.0, its commitment to enhancing security and auditability underscores its role as a leader in blockchain solutions for trade finance.
Discover the latest developments and updates across the network! Keep reading to stay updated and gain exclusive insights you won’t find anywhere else!
Tenity’s XDC Accelerator Program
In collaboration with the XDC Network, Tenity has launched the XDC Accelerator Program, aimed at empowering startups to revolutionize the $28 trillion global trade industry. Furthermore, the program invites visionary startups to utilize the advanced capabilities of the XDC Network to develop disruptive solutions in areas such as Real World Asset Tokenization, Trade Finance, Decentralized Physical Infrastructure, GameFi, and AI.
Additionally, Tenity supports participating startups by offering master classes on critical aspects such as fundraising, product development, and go-to-market strategies while also providing access to a robust network of over 60 partners. This initiative promises to leverage Tenity’s established ecosystem and resources, ensuring comprehensive support and fostering groundbreaking developments in the global trade industry. Applications to the program are being accepted through June 14, 2024.
Genfinity Interviews XDC & Fathom Protocol at Consensus 2024
The Fathom Protocol Interview
We had the opportunity to interview Tyler Carter, co-founder of DeSync Labs and a founding member of Fathom to catch up on how Fathom is diving into DeFi. Tyler started off our interview by explaining that Fathom is a Real-World Asset (RWA) decentralized finance protocol. The team embarked on building Fathom to address the significant issues plaguing the tokenization industry, specifically the lack of utility and distribution. Through Fathom, holders of digital assets that have been tokenized as RWAs can use these assets as collateral for various purposes.
Typically, users utilize Fathom for liquidity-based activities. For instance, a person could bring a tokenized asset, such as tokenized gold, and leverage it to take out a position in a stablecoin. With this stablecoin, they have multiple options. They could reinvest in different strategies through Fathom Vaults or withdraw the stablecoin to use it in their usual transactions. Thus, Fathom provides a versatile platform for maximizing the potential of tokenized assets.
The Evolution of Tokenization and the Future of DeFi
We sought Tyler’s insights on the current pulse of the industry compared to a few years ago and his perspective on how it has evolved. The founder of Fathom has been deeply immersed in the industry for a long time, particularly in the field of tokenization since around 2017 or 2018. He notably achieved a milestone by tokenizing the first indices in the world, which provided him with a comprehensive view of the industry’s challenges. Now, he believes we are at a critical juncture — right before the flywheel effect kicks in and widespread adoption takes off.
Furthermore, Tyler pointed out that significant moves, such as BlackRock directing funds toward tokenization, indicate a promising future for DeFi. With innovative products like Fathom emerging, tokenized real-world assets are gaining utility for the first time. This development gives people a compelling reason to choose tokenized assets over traditional ones. He emphasized that the opportunities provided by DeFi represent first-time access for many users, including both retail investors and institutions. Thus, the landscape of tokenization and its applications in the financial world are poised for a transformative shift.
Fathom’s Milestones and Future Vision
The founder enthusiastically shared the latest milestones Fathom has achieved. Notably, the platform has reached $3 million in stablecoin issuance, with a total value locked (TVL) of approximately $7.5 million. These figures underscore Fathom’s growing influence and success in the DeFi space.
The most exciting announcement, however, is the onboarding of tokenized gold as one of Fathom’s first tokenized assets. This significant development was made possible through a partnership with ComTech Gold. By integrating ComTech Gold onto the platform, Fathom now allows users to leverage their gold holdings for liquidity without needing to sell their positions. This provides a novel way for users to maintain their investment while accessing the liquidity they need.
When asked about the future of the space and Fathom’s role in shaping it, Tyler offered an insightful perspective. He suggested using the retail sector as an example. He explained that Fathom’s Collateralized Debt Position (CDP) stablecoin operates similarly to securities lending, a method commonly used by high-net-worth individuals and institutional businesses. These entities typically take out loans against assets they already possess.
Notably, Fathom provides retail users with first-time access to these sophisticated financial products. Tyler emphasized that this democratization of financial tools is a significant development. Furthermore, he envisions a future where institutions and retail investors coexist in a blended, new market. This integration could foster a more inclusive financial ecosystem, with Fathom contributing significantly by offering advanced financial products to a broader audience.
Fathom Protocol, an extensive DeFi environment, is built on the XDC Network, leveraging its robust blockchain infrastructure to enhance the utility and liquidity of tokenized real-world assets. This integration allows Fathom to capitalize on XDC’s pioneering private subnet capabilities and a strong focus on niche markets like trade finance, providing a solid foundation for innovative financial solutions and broader market adoption.
The XDC Interview
We also interviewed Quincy Jones, a Solidity developer with the XDC Foundation, who works on development for the XDC Network. Additionally, he assists other developers with their projects on the network and handles developer relations. We explored Quincy’s perspective regarding the road traveled thus far and what he is looking forward to moving forward into 2024 and beyond.
Quincy reflected on the evolution of the XDC network, offering an engaging glimpse into its journey. When the XDC network first launched, its primary goal was to integrate specific aspects of DeFi into a traditional finance (TradFi) environment. This initiative began with XinFin and quickly caught the attention of other institutions, leading to a broader adoption of the network.
Furthermore, Quincy highlighted the network’s significant expansion of its open-source community. Initially, the focus was heavily on institutions, but over time, there has been a strategic shift toward nurturing the open-source developer community. Quincy emphasized that their mission extends beyond just creating an institutional-friendly environment; they aspire to build a platform accessible to everyone.
In summary, while the network’s journey started with a strong institutional focus, it has evolved to embrace a more inclusive approach, fostering a vibrant community that benefits both institutions and individual developers.
Exploring Current Trends: Tokenization and Real-World Applications on the XDC Network
Genfinity asked Quincy to discuss the current narratives and trends in the cryptocurrency space, particularly focusing on tokenization and its application to real-world assets. Specifically, we sought to understand XDC’s core focus areas and how the network is working on digitizing and tokenizing industries like trade finance.
XDC Foundation’s developer elaborated on the concept of tokenization, explaining it as the process of representing an asset as a token on a decentralized network. Traditionally, organizations need to rely on interbank settlement organizations or third-party escrow services to conduct trade, managing their assets through these intermediaries. XDC aims to revolutionize this by enabling organizations to automate their trade processes on the blockchain.
Notably, he emphasized that, instead of experiencing settlement times of 3, 5, or even 7 days, XDC’s technology allows for instant settlements of various financial instruments. This capability fosters an environment where trade partners can engage with each other seamlessly and efficiently. Moreover, Quincy humorously pointed out that, despite the focus on building advanced technology, the ultimate goal is to create a thriving ecosystem for trade finance. He noted that trade finance would be ineffective if no actual trading occured. Therefore, XDC’s primary focus is on facilitating and growing this environment in collaboration with other trade finance organizations.
Unlocking Institutional Blockchain Adoption: The Impact of XDC Subnets
Regarding significant milestones and accomplishments within the XDC Network, Quincy emphasized one of the most significant yet underappreciated achievements: the development of XDC subnets. These subnets are essentially independent blockchain networks that institutions can use to migrate their software and technologies onto the blockchain.
With subnets, organizations can test out Solidity contracts, create internal accounting mechanisms, and tokenize various assets. When ready, they can transfer these assets to the main chain for broader engagement and trade. Furthermore, the key advantage of subnets is that they provide a gateway for institutions to adopt blockchain technology while mitigating some of the risks. Overall, this setup allows for gradual integration and adaptation without the immediate need to publish directly to the main blockchain.
Quincy highlighted that operating on a subnet doesn’t preclude using the main chain. Instead, it offers a platform for institutions to integrate their technologies smoothly before publicly displaying their assets. This approach supports a more secure and controlled transition into the blockchain space, fostering greater confidence and wider adoption among institutions.
The Advancements of XDC 2.0
Moving on in the interview, Quincy provided an update on the ongoing audits for XDC 2.0, shedding light on its primary focus: enhancing the network’s security and auditability. While acknowledging the current robustness of the network’s security, the emphasis with XDC 2.0 is on enabling a higher level of auditability and forensics capabilities.
He emphasized the importance of traceability in the event of any on-chain incidents, highlighting the need for efficient tools to track and investigate such occurrences. XDC 2.0 aims to address this gap by incorporating a suite of tools that allow different network participants, including master nodes, to engage in forensic analysis.
Quincy underscored that while some third-party tools exist for other blockchains, XDC seeks to integrate these features directly into its layer-one network. This approach ensures that in the event of any mishap, whether it’s within an application or the network itself, users have the necessary tools for thorough audibility and forensic analysis.
In summary, the primary objective of XDC 2.0 is to augment the network’s security measures by providing enhanced auditability and forensic capabilities, thereby offering users a greater level of confidence and transparency in their transactions and interactions on the network.
Looking ahead
Thinking about the future, Jones provided a thought-provoking insight into the evolution of tokenization and its impact on real-world assets. While there’s much talk about tokenization, the conversation often overlooks its implications at scale. Subsequently, tokenization isn’t just about digitizing assets; it involves a layered process that encompasses various elements, such as tokenizing properties, mortgages, and other financial instruments.
As the industry matures, Quincy noted a shift towards more serious considerations in the space. It’s no longer just about generic NFTs or digital images; it’s about tokenizing the rights associated with different assets and automating these rights through additional layers of tokenized assets, such as loans or contracts.
Looking ahead, Quincy foresees a future where real-world tokenization is coupled with advanced automation, leading to quicker settlement times and the emergence of sophisticated financial products on the blockchain. He highlighted the ease of collateralization that tokenization brings, enabling efficient issuance and management of loans. This integration of various components, including assets and loans, signifies a maturation of the Web3 space, paving the way for innovative financial solutions to thrive on-chain.
XDC Celebrates its Fifth Anniversary
June 1 marked the fifth anniversary of the XDC Network mainnet, developed by XinFin Fintech to revolutionize trade finance and real-world asset tokenization. Since its inception, the blockchain industry has increasingly focused on bringing RWAs on chain, validating XinFin’s vision of digitizing finance. Tokenization is gaining traction as organizations recognize its potential to reduce inefficiencies in finance, especially in trade finance.
In its early years, the XDC Network focused on enterprise readiness, interoperability, and integration with established financial institutions, leading to significant milestones such as joining the International Trade and Forfaiting Association (ITFA) and developing a bridge to R3’s Corda Network. By year three, the XDC Foundation was established to support the network’s growth, and the network joined key industry initiatives, further solidifying its role in trade finance.
Recently, the network has seen increased adoption, with notable integrations and the launch of significant projects like TradeFinex and TRADA. Moreover, regulatory advancements like the U.K.’s Electronic Trade Documents Act and technological upgrades like the XDC 2.0 mainnet protocol have strengthened the network’s capabilities, positioning it as a leading platform for RWA tokenization.
Circularity Finance Gears Up for a Pilot Program
As Circularity Finance prepares for its pilot initiative with the Digital Chamber of Commerce of Panama, the organization aims to introduce cutting-edge technological innovations that bridge traditional finance with Distributed Ledger Technology (DLT). This pilot marks Circularity Finance’s entry into Latin America, promising to enhance efficiency in business and trade finance through DLT solutions.
Notably, the initiative will leverage XinFin’s decentralized EduTech platform, CIFIDegrees, which will deploy Web3 content to educate professionals on transitioning to DLT-driven businesses. Utilizing the ISO 20022 standard, the platform ensures robust data communication capabilities, extending adoption potential to universities and government agencies interested in blockchain education.
Looking ahead, Circularity FI plans to establish a CIFI Jobs Marketplace based on DAOs, utilizing NFT Degrees to facilitate on-chain bounties and token-gated transactions across platforms. By aligning with global standards and compliance requirements, Circularity FI seeks to make a significant impact globally, ushering in a new era in finance and education. The pilot is set to commence this June, marking a pivotal step towards achieving these ambitious goals.
Stay Tuned
Looking ahead, the XDC community remains steadfast in its mission to redefine finance through tokenization and decentralized solutions. By fostering a vibrant ecosystem that bridges traditional finance with DLT, XDC continues to unlock new possibilities in trade finance and beyond.
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