R3’s Corda based-blockchain network is gearing up to enter the DeFi space by launching XDC crypto tokens on its network. The new digital currency will pave the road towards various DeFi apps running on Corda’s distributed ledger technology.
XDC, A Digital Currency In Itself
The Cordite Society, a co-operative registered in the U.K., released the XDC digital currency on public Corda, the open-source version of R3’s network. Cordite Society will be minting the first run of its 1 million XDC. Its membership is now open who can vote on the rate of supply of XDC and other points of governance.
Richard Crook, CEO of Cordite, said:
“XDC is a digital currency in its own right. It is issued as an exchange token to Cordite Society members, and as it’s minted or created, will be evenly distributed amongst those cooperative society members.”
R3’s Corda network’s each node represents a legal entity, identified by a trusted identity certificate. This ensures that the XDC crypto tokens meet the G20-sanctioned Financial Action Task Force (FATF) standards to deal with anti-money laundering (AML) risks.
XDC Can Pave The Way For CBDCs and DeFi
The CEO of Cordite further adds that its XDC code can open the door for central bank digital currencies to run on Corda while enabling towards an ethical expansion of the DeFi industry, he continues:
“It takes us back to that ability for legal entities to come together and share equity or debt and work together for a common aim. That’s why cooperatives were created in the first place. And that’s why we are showing that with XDC, you can mix the legal and the technology components to solve this DeFi requirement set.”
R3 started out as a pay-to-join DLT consortium of big banks. With time, the network created the open-source Corda Network, catering especially to the developer community.