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2023: XDC Network's most transformational year yet

Words by XDC Foundation

Avg. 7 Min read

From global advancements in digitalization and real world asset tokenization to an upsurge in development activity, the XDC Network benefitted from a fruitful 2023.

This year saw influential global events that point to a promising future for blockchain adoption. Landmark legislation in the UK enabling electronic bills of lading (eBLs) set the stage for increased flows of global liquidity onto blockchain. Through adoption in strategic geographic locales and the launch of real world asset tokenization (RWA) on-chain, along with integrations with leading providers in the trade finance industry, the XDC Network is uniquely positioned to provide solutions for the trade finance gap.

Real world asset tokenization in the spotlight on XDC Network

Tokenized U.S. Treasury bonds and private credit led RWA in 2023 and have exceeded $1.3 billion in value thus far. Tradeteq’s U.S. Treasury Token (USTY) that launched via their Yieldteq subsidiary on the XDC Network in August gives investors exposure to a multibillion-dollar, highly liquid ETF that is indexed to short-term U.S. government bonds. 

The tokens are issued through digital securities provider Securitize

This important milestone offers a further proof point in RWA showcasing the advantages of blockchain technology by leveraging the power of traditional investment classes. The integration also highlights the XDC Network as one of a handful of blockchain networks to be able to support security tokens through the SEC-compliant Securitize platform for both primary and secondary issuances. RWAs are playing an increasing role in traditional finance’s adoption of blockchain technology. And XDC ecosystem projects, like Comtech Gold, offer tokenized real world assets through their business models.

RWAs are an object lesson in the genius and power of the blockchain. In crossing both legal and technological frontiers, they have the potential to invigorate TradFi and provide highly attractive new investment opportunities.
— Sarah Green, Law Commission of England and Wales

Trade finance and XDC Network were big victors this year

With the implementation of the UK Electronic Trade Documents Act 2023 (EDTA) in September, the conversion of burdensome paper documentation to an electronic format is showing early signs of adoption. With at least 60% of the world’s trading corridors utilizing British law, this significant milestone will enable much shorter trade times. And with its firm foundation in trade finance, few blockchain networks will be more positively impacted by this new law than the XDC Network.

As legacy systems adjust to these new standards, blockchain technology stands ready as a promising solution. 

TradeTrust, for example, is an electronic documentation platform that connects governments and businesses through globally-accepted trade standards. Through the platform, end users can exchange and verify electronic documents and effect title transfers, regardless of their current business systems.

  • XDC Network became one of only three blockchains to fully integrate with TradeTrust this year. 

In fact, XDC Network continues to lead in the trade finance space. Recognized by the International Chamber of Commerce and World Trade Organization in their periodic table of DLT projects in trade, XDC Network’s TradeFinex platform is set to aggregate smart contract-based trade finance assets for alternative asset investors — helping to shrink the $3.5 trillion trade finance gap. Together with XDC Trade Network and several participants in the XDC ecosystem, the pilot program converted a paper bill of lading to an eBL following the new UK eBL law. This demonstration offers another proof point in how trade finance liquidity becomes available through tokenizing a real world asset.

Regulatory strides were significant in 2023

The long-term potential of blockchain technology is bolstered any time there are advances in regulations that support its usage. Perhaps leading the way this year was the EU’s Markets in Crypto Assets (MiCA) legislation that passed in April. In enacting this legislation, the EU recognizes how crypto tokens function as legitimate utility assets and investment vehicles, signaling the EU’s confidence in the promise of blockchain technology to address real world problems. 

  • MiCA signed into law on May 31, 2023

  • XinFin submitted a Call for Evidence to the UK’s Parliament in January 2023 as part of the Electronic Trade Documents Act legislative process.

  • Digital Negotiable Instruments initiative (DNI) embraces regulatory clarity in its mission to digitize negotiable trade instruments.

  • XDC Trade Network positions itself as a core technology provider compliant with MLETR (ETD Act)

Japan revised its Payment Services Act last year, which provides for the regulation of stablecoins in that country. Notably, Circle and SBI Holdings signed a memorandum of understanding in November 2023 that facilitates the adoption of the USDC stablecoin in Japan, further emphasizing its commitment to a Web3 economy. XDC Network is well positioned to offer utility throughout Japan and across other progressive digital asset environments.

  • SBI VC partners with XinFin and adds support for the XDC Network 

  • SBI VC works to support and create awareness for the XDC ecosystem in Japan

Elsewhere, the Monetary Authority of Singapore (MAS) seeks to strengthen its Digital Payment Token regulations for service providers, offering further protection to digital asset investors. In the post-Brexit UK, the Treasury is moving forward to implement crypto regulations, beginning with stablecoins. It wants to achieve a balance between investor protections and building a digital asset economy.

  • MAS-regulated Propine senior representative Taniya Singh joined Aneri Merchant, Investment Manager at XVC Tech, as participants on panel discussions at ETHToronto in August.

  • XDC Network participants hosted ‘Regulating Web3: What does the Future Hold?’ in Dubai.

Success depends on your network

One of XDC Foundation’s primary messages strikes a dual meaning. While success depends on your network’s technology, it also relies on the network of people and applications built on the network. 

With that in focus, XDC Foundation supported and participated in several global events and conferences in 2023. 

Through these events, the Foundation sought to create awareness for the XDC Network and its capabilities to all levels of participants. During the process, we added to and strengthened existing alliances, hosted and participated in educational panels, and facilitated the onboarding of new developers and projects. XDC Foundation hosted panel discussions on RWA Tokenization, Growing Vibrant Ecosystems, and Trade Finance Unleashed: Perspectives from Industry Titans.

Developer growth, hackathons, and XDC’s surging network effect

The year 2023 brought a new and deliberate focus: the accelerated development of the XDC protocol on both the consensus and application layers. This shift arrived on the back of industry upheaval in 2022 – a window in time that the XDC community determined to use as an opportunity to build. Among the community's goals were driving development activity, updating documentation and enhancing the strengths of the protocol. In November of 2023, XDC 2.0 (formerly XDPoS 2.0) successfully arrived on the Apothem testnet. Likewise, XDC development teams have modeled a turn-key subnet solution designed to serve institutional participants, set to come to market in 2024. 

As more developers and participants, in general, leverage and interact with the technology, XDC Foundation has embraced developer hackathons as a way to foster a well-rounded ecosystem. 

The work of global participants brought new and significant adoption of the network across the world. Hackathons were conducted in Dubai, Toronto, Austin, New York, Barcelona and Singapore. Projects proposed solutions for e-commerce, gaming, DeFi, AI, sustainability, metaverse, and tokenization, among others.

  • Over a dozen hackathons created an environment where more than 350 teams with over 1,000 contestants competed for grants to build on the network. 

  • XDC Network received the highest percentage of applications amongst all participating blockchains at Consensus Web3athon and ETHToronto.

Many of the events referenced above showcased the XDC Network as an attractive destination for concept projects. These inclusive and competitive events encouraged innovation and a wide range of developer activity. Many independent teams across the community led these events in their respective regions creating a true global effort. 

Since year end in 2022, the network has seen broader participation and interaction amongst developers and other stakeholders. Discord, for example, is the destination for development support. It sees a continuous stream of interactions on multiple channels, including multilingual support. XDC.dev is the forum for community members to post about the network — articles, tutorials, community votes — and engage in discussions on many topics.

XDC Network observed a steeper trajectory of developer growth this year and the momentum it brings bodes well for a well-rounded ecosystem.

Integrations and ecosystem growth excelled on XDC Network in 2023

As mainstream businesses continue to adopt blockchain technology, a healthy technical environment becomes essential for protocols and dApps launched on-chain. XDC Network’s integrations with industry-leading platforms and its flourishing ecosystem led to a fundamentally strengthened ecosystem, stable access to the network and unique application of the protocol. Notably:

  • Ankr offers developer access to a global network of professionally managed nodes, essential for most blockchain use cases. 

  • The risk analysis platform Elliptic provides industry-leading on-chain compliance solutions. 

  • Securitize sets the standard for tokenizing digital asset securities. 

  • Coins.ph provides fast and efficient blockchain-enabled cross-border transfers and remittance transactions for its 18 million customers.

These and other integrations offer significant benefits to the entire XDC ecosystem and will provide the railways for decentralized finance growth and capital flow on the XDC Network. 

XDC Network exposure extends in various ways

  • Increased international market exposure. In May, XDC Network increased its international presence when Tokyo-based SBI Holdings announced support for the XDC Network through its subsidiary, SBI VC Trade exchange, noting the influence XDC Network brings to the trade finance sector. 

  • Upgraded XDC.org website. The site was engineered to support a wide variety of users, providing resources for developers, enterprises, trade finance and creatives – anyone looking to learn more about XDC Network or blockchain technology.

  • Social media fosters awareness for the XDC Network’s usage and utility. From X spaces and podcasts to Medium and LinkedIn articles, the XDC ecosystem finds balance sharing essential content across various social media platforms.

Looking to 2024 and beyond

The transformational events and ecosystem support provided in 2023 establish a proper foundation for sound and steady growth in 2024 and beyond. Through its many industry affiliations and ecosystem participants, the XDC Network is well-positioned to serve as a leading solutions provider for blockchain-based global trade. As more institutions leverage blockchain technology, XDC Network will remain a strong candidate for adoption and utility. 

Increased international exposure at events and growth in new geographic locales will help the network develop roots across the world. Blockchain – a technology designed to facilitate the exchange of data and assets in a manner that is decentralized and borderless –  will continue to invite and drive creative applications, as well as a global collective of people who support and engage with the technology.

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