This article is sponsored by XDC.
In an era when blockchain technology is redefining the boundaries of finance, XDC Network emerges as a pioneering platform, bridging the gap between digital and traditional asset worlds. This article delves into the transformative potential of integrating Real World Assets (RWA) with blockchain through the lens of XDC Network, showcasing how this innovative blend is setting new paradigms in the financial landscape.
The Role of Real World Assets (RWA) in Blockchain
Real World Assets (RWA) refer to tangible or intangible assets from the traditional economy, such as real estate, commodities, or financial instruments, that are tokenized and brought onto the blockchain. This integration offers unprecedented benefits, including enhanced liquidity, transparency, and global access while democratizing investment opportunities.
However, tokenizing real world assets poses unique challenges, such as ensuring regulatory compliance, establishing reliable valuation methods, and creating robust frameworks for asset management and transfer. XDC Network addresses these challenges head-on, providing a secure and compliant RWA tokenization and trade environment.
Understanding XDC Network
XDC Network is a pioneering, carbon-neutral, and EVM-compatible Layer 1 blockchain, renowned for its enterprise-grade capabilities. Leveraging a unique XinFin Delegated Proof of Stake (XDPoS) consensus mechanism, it achieves remarkable transaction speeds of 2 seconds and over 2000 TPS, with minimal gas fees (around $0.0001).
Designed for interoperability and compliance with ISO 20022 financial messaging standards, the XDC Network excels in facilitating Trade Finance, payment processing, and Real World Asset (RWA) tokenization. Its robust, scalable, and efficient platform underscores a commitment to innovation, making it a preferred choice for businesses seeking advanced blockchain solutions.
With a robust infrastructure, XDC Network ensures lightning-fast transactions, minimal fees, and enhanced platform interoperability. This makes it an ideal ecosystem for developing and hosting Real World Assets, allowing seamless integration into the digital economy.
Showcasing RWA Ecosystem on XDC Network
XDC Network Ecosystem involves various RWA projects, demonstrating the network's capacity to revolutionize different sectors.
1) ComTech Gold (CGO)
ComTech Gold (CGO) is a groundbreaking digital asset backed by 100% physical gold. Each CGO token represents one gram of pure gold, and the gold backing CGO is securely stored with Transguard, a reputable vault operator in the UAE.
CGO tokens are directly linked to real-world gold. Every circulatory CGO token has a corresponding piece of physical gold stored in a vault. These gold bars are standardized 1 kg bars with 999.9 purity. This system's transparency ensures that each CGO token is backed by an identifiable piece of gold, complete with its audit trail.
CGO's value remains stable because it's directly tied to the international gold rate. It is fully Shariah-compliant and certified by a renowned UAE Shariah scholar group that proves the CGO. Investors holding CGO tokens have the unique advantage of being able to convert them to physical 1 kg gold bars whenever they choose. CGO is available on Lbank, Bitmart, Bitrue, and Xswap Dex exchanges. Apart from exchanges, anyone can buy CGO directly from ComTech Gold's mobile application using this simple guide.
2) U.S. Treasury Securities Tokenization by Yieldteq (USTY)
U.S. Treasury Securities Tokenization by Yieldteq is an innovative XDC Network application designed to modernize traditional financial instruments through blockchain technology. This initiative allows for the tokenization of U.S. Treasury Securities, bridging conventional financial systems and the burgeoning field of decentralized finance (DeFi).
USTY falls under the jurisdiction of the Securities and Exchange Commission (SEC) in the United States. USTY tokens are subject to securities laws, which aim to protect investors and ensure transparency in the financial markets.
3) STASIS (EURS)
STASIS EURO, or EURS, is a digital version of the Euro. It's a stablecoin, which means each EURS is worth the same as one Euro, and they keep enough real Euros to back up all the EURS they create. They focus on stablecoins, cryptocurrencies designed to have a stable value. They aim to make it easy for people to use digital money.
The STASIS-issued EURS has gained recognition as a dependable asset within the Euro stablecoin sector, appealing to a broad audience, including users, businesses, traders, and merchants. Its distinct attributes, backed by thorough research, demonstrate EURS's superiority as a multichain asset. The STASIS team's commitment to multichain development has led to enhancements in transaction speed, reduced fees, and improved scalability, further expanding the EURS user base. The integration of EURS with the XDC network has fortified its position, attracting a new global community and enterprise participants. EURS can be traded or bought from exchanges, namely HitBTC, Indodax, Yobit, Curve, and Xswap Dex.
4) Kinesis Money (KAU) (KAG)
Kinesis Money is a monetary system that allows users to manage and spend gold and silver as money. It offers digital currencies fully backed by physical gold and silver, known as Kinesis Gold (KAU) and Kinesis Silver (KAG). One KAU is equivalent to one gram of physical gold bullion, and one KAG is equivalent to one ounce of physical silver bullion.
The system is designed to provide a stable and transparent way to protect wealth by using precious metals as a medium of exchange. Users can earn yields by holding, spending, referring, or minting these digital currencies. The gold and silver are stored in secure vaults, and the ownership is verified through regular independent audits. Kinesis Money aims to offer a fair and rewarding monetary system that is resistant to inflation and provides a true store of value, contrasting with traditional currencies that can be susceptible to devaluation.
5) TradeFinex
TradeFinex is a blockchain-based platform that facilitates trade finance solutions by connecting trade finance originators with a network of banks and financial institutions. Built on the XDC Network, TradeFinex leverages blockchain technology to provide a secure, transparent, and efficient mechanism for various trade finance transactions.
Recently, Zoth — a Web 3 fixed-income marketplace, has completed its successful Supply Chain Financing (SCF) pilots via the tokenization of invoices using the XDC Network. InvoiceMate, acting as the loan originator, achieved a notable feat by securing funds for client H & H International LLC through the tokenization of essential documentation, including the invoice. The pilots used TradeFinex's open-source smart contract standards. They were funded using FXD, a fully decentralized stablecoin soft pegged to U.S. Dollars, and over-collateralized with the XDC token using the Fathom Protocol. It is easy to create a regulated pool on the TradeFinex marketplace for improved cash flow and easy access to trade financing, strengthening buyer/supplier relationships.
6) Fathom Dollar (FXD)
Fathom Dollar FXD is an XDC Network-based stablecoin. It represents a stable-price cryptocurrency issued and developed by Fathom DAO, which FTHM, a decentralized autonomous organization, fuels. The value of FXD is softly pegged to the U.S. dollar and is supported by an over-collateralized XDC Token, which is securely held in smart-contract vaults while creating new FXD tokens.
One of the primary objectives of FXD is to address the existing gap in trade finance by offering direct access to alternative investors for micro, small, and medium-sized enterprises (MSMEs). Through platforms like portal.tradefinex.org and fathom.fi, Leveraging the fast, scalable, and secure infrastructure of the XDC Network, FXD provides Stable options to MSMEs with a more accessible and cost-effective means to access the necessary capital for business growth. This initiative contributes to economic expansion and job creation, empowering MSMEs to thrive in the global marketplace.
Minting Fathom Dollar FXD is done with simple steps, such as keeping XDC in an escrow contract. Here are the steps to mint FXD:
-
Connecting the Wallet to Fathom Dapp
-
Opening the Position
-
Entering the amount of Collateral XDC
-
Clicking on Open this position
-
Approving the Position.
Currently, more than 1 million FXD has been minted, keeping 2.5 million XDC locked as collateral. Anyone can swap or buy Fathom Dollar FXD on the Fathom Dex, Xswap, or Bitrue exchange.
The Future of XDC Network and Real World Asset Tokenization
The fusion of blockchain technology and Real World Assets is just beginning, with XDC Network leading the charge toward a more integrated, efficient, and transparent financial ecosystem. As blockchain technology evolves and adoption widens, XDC anticipates even more innovative applications of RWA, further enhancing platforms' utility and reach.
The XDC Network warmly welcomes Real World Asset (RWA) projects to join our platform and build on the XDC Network. XDC encourages these projects to actively engage with the community by posting any support needs or inquiries on the XDC.Dev forum, where they can find assistance and collaboration opportunities.
The future aims to hold promising developments for XDC Network, including technological advancements, expanded partnerships, and growing community engagement, which will bolster its position as a critical player in the RWA Blockchain space.
XDC Network Market Updates
While writing, the trading volume of XDC Network (XDC) is $19,206,596 in the last 24 hours, trading at $0.042, where the price is 77.88% lower than the all-time high price and 10,684.76% higher than the all-time low price. XDC is traded on the exchanges namely Kucoin, Bitfinex, Uphold, Gate.io, HTX, CEX.io, Bitget, HitBTC, Huobi, Indodax, Bitrue, CoinDCX, Coins.ph, Bitmart, FMFW, Lbank, MEXC, BLOX, Mercatox, CoinEX, StealthEx, Whitebit, Bybit, CoinW, DigiFinex, BuyUcoin, Liquid, Bequant, ProBit, Changelly Pro, Proton DEX, Kinesis. XDC is also listed on Xswap DEX, Globiance DEX, Changelly, SwapZone, Simple Swap, and more, and the list can be found at Get XDC on the website.
Conclusion
XDC Network exemplifies the transformative potential of blockchain technology when applied to Real World Assets, offering a glimpse into a future where digital and traditional finance converge seamlessly. As we stand on the brink of this new era, the opportunities for innovation, investment, and growth are boundless.
Always do your own research before investing in any cryptocurrency or project. This article is for educational and informational purposes only and should not be taken as investment advice.
CoinGecko's editorial team comprises writers, editors, research analysts and cryptocurrency industry experts. We produce and update our articles regularly to provide the most complete, accurate and helpful information on all things cryptocurrencies. Follow the author on Twitter @coingecko
Or check it out in the app stores
