R3’s enterprise-grade blockchain platform, Corda, announced the launch of the DeFi-centric XDC token on its platform on October 20. The new regulatory-compliant token will be used to power the DeFi-focused applications running on the blockchain. However, it’s parameters and governance modes will be determined later, by the community.
XDC token’s concept was presented at last year’s official event called CordaCon, by the project’s official Cordite society. It remained in the research phase for a long time, until now. It has been announced that the team will be minting 1 million XDC tokens initially to support the DeFi infrastructure.
R3 Transition To Corda Network And Cordite Society
The project focused exclusively on financial institutions and bank consortiums to solve problems in both complex and highly-regulated markets when it first started. However, over time it transitioned to become the full-fledged Corda network. Now, it has a large developer base and a community supporting that. As previously reported that 55 Italian banks alone have joined the Corda blockchain.
As an added advantage, Cordite society fully abides by UK legal provisions. According to R3‘s CEO Gendal Brown:
“We made some unexpected bets three and a half years ago. We challenged the idea that a blockchain should send data to all parties, that people would be willing to write their applications in a new untested language, and that you should throw away existing technology. Instead, we made a choice to build Corda on the JVM and we said the world needs a new platform.”
Brown added that their decision to make Corda open-source was not planned but came as a surprise. Fortunately, it paid off many times over.
Corda – The Way Forward
Cordite’s society membership is open and will be responsible for all governance matters moving forward. On the blockchain, it’s represented by a Decentralized Autonomous Organization (DAO), which is fully compliant with Anti Money Laundering (AML) / Know Your Customer (KYC) regulations.
There are also plans for the Corda network to offer Central Bank Digital Currencies (CBDCs) issuance and management services to the central banks, which can potentially lead to DeFi’s mainstream usage and adoption. The Corda blockchain is well-positioned to do so as over 350 institutions have joined since the network connects them all together and revolutionize the way they interact.