The XDC Network, formerly known as XinFin, is expanding its presence in the Japanese market through a partnership with SBI VC Trade Co. Ltd, a cryptocurrency exchange subsidiary of Tokyo-based financial holding company SBI. Announced on May 31, the partnership aims to bring the unique value proposition of the XDC Network to the trade finance market in Japan and enhance the trading experience.
In March 2023, the XDC Network became one of the top 5 altcoin gainers, with its value rising by 54% in thirty days. It supports EVM-compatible smart contracts, protocols, and atomic cross-chain token transfers and complies with the ISO-20022 message standard, an internationally accepted standard for electronic data interchange between financial institutions.
To further foster its growth, XinFin decided to decentralize the governance of the blockchain by forming a decentralized autonomous organization (DAO). After deployment in May, the community will have the opportunity to decide on the distribution of ecosystem funds to promote development. XDC Network co-founder Atul Khekade expressed his excitement about partnering with SBI VC Trade, stating that Japan is a crucial hub for international trade, and the XDC blockchain platform aims to streamline this sector by improving transparency, traceability, and reducing costs.
On the other hand, SBI is also raising its presence in key crypto markets. In September 2022, it received a license to operate in Singapore. Moreover, one of its investees, Clear Markets, received approval from the U.S. Commodity Futures Trading Commission to offer over-the-counter crypto derivatives products with a physical settlement.
While the partnership between the XDC Network and SBI VC Trade seems promising, some challenges may arise in the future. The Japanese market is known for its strict cryptocurrency regulations, which could potentially hinder some aspects of the project’s growth. In addition, the decentralized nature of the DAO governance model might lead to decision-making complications that could slow down progress. However, if successful, this partnership could contribute significantly to the growth and adoption of blockchain technology in the international trade and finance sectors.
In conclusion, the partnership between the XDC Network and SBI VC Trade marks an essential step forward in the expansion of blockchain technology in the Japanese market. While challenges may lay ahead, the collaboration has the potential to bring significant improvements to the trade finance sector in terms of transparency, traceability, and cost reduction. With a strong track record so far, XDC and SBI VC Trade’s partnership will be one to closely watch in the coming months and years.
Source: Cointelegraph
