Circle's USDC stablecoin supply on XDC Network increased approximately 200% during October, according to data from Token Terminal, as the layer-1 blockchain positions itself for institutional trade finance applications following its recent acquisition of Contour Network.
The supply surge comes after XDC Network's venture arm announced it had acquired Contour Network, a digital trade finance platform originally backed by HSBC, Citi, and Standard Chartered.
XDC did not disclose the acquisition price but stated it would restructure Contour with fresh capital and integrate stablecoins into real-world trade processes.
Contour Network was developed by major financial institutions to streamline trade finance using blockchain infrastructure.
Despite backing from three of the world's largest banks, the platform struggled to achieve commercial scale and was shut down in late 2023.
Trade finance, which involves financing international trade transactions through instruments like letters of credit and bank guarantees, has long been identified as a potential use case for blockchain technology due to inefficiencies in paper-based processes and multiple intermediary banks.
A report by Ripple and Boston Consulting Group published earlier this year projected that automating trade finance processes with smart contracts and programmable digital payments on blockchains could save billions of dollars annually.
Under XDC's ownership, Contour will be repositioned with a focus on stablecoin integration for trade settlements.
The strategy appears designed to leverage USDC's liquidity and regulatory compliance profile for institutional use cases rather than rebuilding proprietary payment rails.
The 200% increase in USDC supply on XDC Network during October suggests either institutional testing of stablecoin settlement infrastructure, increased liquidity provision in anticipation of Contour's relaunch, or organic growth in existing XDC Network applications utilizing USDC.
Token Terminal data tracks on-chain stablecoin supply across various blockchain networks, providing visibility into where institutions and traders are positioning capital.
A tripling of USDC supply on a single network within one month represents significant capital movement, though the absolute supply figures were not disclosed in Token Terminal's announcement.
The development occurs as global banks accelerate exploration of blockchain-based settlement systems and tokenized real-world assets.
Several major financial institutions have launched pilot programs for stablecoin payments, tokenized deposits, and blockchain-based trade finance in recent months.
JPMorgan operates its JPM Coin for institutional settlements, while Citigroup has tested tokenized deposits on public blockchains. Standard Chartered has been active in both stablecoin infrastructure investment and blockchain trade finance initiatives.
However, many bank-led blockchain projects have struggled with commercialization despite successful pilots.
The challenge typically involves coordinating multiple institutions to adopt shared infrastructure when competitive dynamics and regulatory uncertainty create adoption friction.
XDC Network competes with multiple blockchain platforms pursuing institutional trade finance and real-world asset tokenization, including Ethereum layer-2 solutions, Stellar, Ripple, and enterprise blockchains like Hyperledger Fabric.
Circle's USDC is available on numerous blockchain networks, and its decision to maintain or expand USDC support on XDC Network suggests the company views the platform as viable infrastructure for institutional applications.
Circle typically evaluates blockchain networks based on technical capabilities, security, and potential transaction volume before supporting USDC issuance.