UK co-operative Cordite Society has launched XDC, the first public blockchain Corda Network digital currency, leveraging the existing UK legal structure for mutual societies to operate a digital currency, and thus providing the first onshore legal structure for decentralised finance (DeFi).
XDC, is an exchange token, released onto the Public Corda network, a publicly-available internet of Corda nodes operated by network participants. The token enables users to buy and sell goods within the public Corda network, such as settle securities, invoices, trade finance and more. Each node represents a legal entity, identified by a certificate, something that the firm says ensures that XDC meets the G20 sanctioned FATF standards on digital assets to mitigate AML/CTF risks, a challenge that Ethereum-based DeFi projects continue to be unable to address.
The XDC project is being touted as a case study that demonstrates the Corda Network’s suitability for building central bank digital currencies (CBDCs) and other stablecoins. “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,” says Ben Wyeth, director of the Cordite Society and lead developer of XDC. “XDC is an excellent case study that demonstrates Corda’s suitability for building stablecoins, especially in the US where they have opened up the opportunity for commercial banks to create stablecoins,” he adds. “We are now expecting others to use the Cordite code base to create their own stables coins or CBDCs and accelerate adoption of those currencies.”
BCB Prime Services, which was the first digital asset financial group to join the public Corda network, will provide OTC liquidity and custody services for XDC for its clients.
“A globally scalable ‘currency’ use case of cryptocurrencies has been elusive in over a decade of innovation in this space,” says Oliver von Landsberg-Sadie, founder and CEO, BCB Group. “One of the barriers has been closer alignment with existing systems of money, regulations and government, in a way which still preserves the decentralised ethos of the asset class. 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.”