R3’s Corda Blockchain Network Launches It’s First Digital Asset, XDC, Aims to Break Into DeFi Ecosystem
R3 Corda public network announced the launch of its first digital asset, XDC, to build a regulated and public decentralized finance (DeFi) ecosystem for financial institutions.
The token launched on Today after Cordlite Society Ltd., a co-operative society registered in the UK, leveraged the U.S. legal structure on mutual societies to provide its legal structure for the DeFi ecosystem.
The XDC token will run on the public Corda network, the open-source version of the R3 network, composing of a group of former bankers and finance leaders. According to a press release shared with BEG on Tuesday, XDC aims to promote a regulated and legal buying and selling of products within the Corda public network to promote decentralization. The token meets the FAFT standards, mitigating the AML/CFT risks by assigning each node a trusted identity certificate.
This is a big change across the DeFi ecosystem, which has been ravaged with scams and rug pulls in the past few months – as authorities start to crack down on them. Corda is pushing for XDC use in a legalized and regulated structure bringing financial institutions together in the ecosystem.
The release to BEG further states XDC’s legal structure will “ensure transactions are kept private between parties” in addition to AML/CFT compliance. Speaking on the launch of XDC, Ben Wyeth, Director of the Cordite Society and lead developer of XDC said,
“The roll-out of XDC demonstrates that the public Corda blockchain network is suitable for enterprise and financial institutions who want to enter the DeFi space, solving the technical and regulatory challenges faced by other technologies.”
Notwithstanding, the XDC token aims at solving pertinent problems faced by other cryptocurrencies – especially in the DeFi space, including the inefficient medium of exchange, high transaction fees, and slow transactions. The Public Corda blockchain also offers a suitable and regulated platform for banks and central banks to build their digital currencies (CBDCs) and stablecoins, Wyeth continued.
“We are now expecting others to use the Cordite codebase to create their own stables coins or CBDCs and accelerate the adoption of those currencies.”
Commenting on the launch of the XDC token n the Public Corda blockchain, Oliver von Landsberg-Sadie, Founder and CEO, BCB Group, who will provide liquidity and custodial services for the token to institutional clients, stated XDC is a scalable token that “still preserves the decentralized ethos of [cryptocurrencies]” while aligning itself to current systems of finance and regulations.
Given that XDC has dual advantages from both sides of the table – regulators and decentralization – Oliver praised and backed the token launch. He said,
“The XDC digital currency is one of a tiny handful of projects which meets all these complexity criteria, and I'm excited to back this project from all angles.”