XDC Network Explained: What It Is and How It's Used in Trade Finance
What XDC Network is, how its XDPoS masternode consensus works, what the XDC token does, how it is pitched for trade finance, and what the ISO 20022 claims mean.
Video coming soon.
Key takeaways
- XDC Network is an EVM-compatible layer-1 blockchain, so it runs Ethereum-style smart contracts and tools, aimed mainly at trade finance and tokenized real-world assets.
- Its consensus, XDPoS, uses 108 active masternodes. Running one takes a 10,000,000 XDC stake, and other holders can stake to vote for candidates.
- Trade finance on XDC means turning paper instruments like invoices, bills of lading and letters of credit into tokens that can be financed and settled on-chain.
- XDC says its solutions support ISO 20022 compatibility. That describes software that can work with bank messages; no body certifies a coin as ISO 20022 compliant.
- Check every partnership claim against the partner's own announcement, not a social media post.
XDC Network is an EVM-compatible layer-1 blockchain secured by 108 masternodes under a delegated proof-of-stake system called XDPoS. It is aimed mainly at trade finance and tokenized real-world assets: turning paper instruments such as invoices and letters of credit into digital tokens that can be financed and settled on-chain.
That pitch draws strong claims online, including partnership lists and “ISO 20022 coin” labels. This article sticks to what XDC’s own documentation and its partners’ announcements say: how the network works, who runs it, what the XDC token does, how it is used in trade finance, and the risks to weigh.
What is XDC Network?
XDC Network is an open-source layer-1 blockchain, meaning it runs its own network rather than sitting on top of another chain. It is EVM-compatible: the EVM is the Ethereum Virtual Machine, the engine that runs Ethereum smart contracts. In practice, developers can write contracts in Solidity and use common Ethereum tools such as Web3.js and Ethers.js.
XDC describes its design as hybrid:
- The public mainnet is a shared ledger that anyone can verify.
- XDC Subnets are private chains a company can run for itself. Sensitive data stays private, and only hashed proofs or checkpoints are anchored to the public chain.
According to XDC’s documentation, blocks arrive about every 2 seconds. As of October 2026, its architecture page says a transaction typically reaches final, BFT-confirmed status about 2 to 4 seconds after it is sent, while XDC’s MiCA white paper gives a figure of about six seconds. Either way, finality is measured in seconds, not minutes.
How does XDPoS consensus work?
XDC uses XinFin Delegated Proof of Stake, or XDPoS. Instead of miners, a fixed set of 108 masternodes produces and confirms blocks. The process, from XDC’s architecture documentation:
- Token holders stake XDC to vote for masternode candidates.
- The top 108 candidates become active masternodes.
- Masternodes take turns proposing blocks.
- Validators sign blocks to confirm them.
- Rewards are paid to masternodes and the holders who voted for them.
The validator set rotates in epochs of 900 blocks. Running a masternode requires a minimum stake of 10,000,000 XDC, plus server hardware and very high uptime.
Around the start of October 2024 the network moved to XDPoS 2.0, which XDC also calls XDC 2.0. It added a Byzantine fault tolerant (BFT) committee, a design that keeps the chain safe as long as no more than one-third of the masternodes in an epoch are malicious. It also records cryptographic evidence if masternodes misbehave, and the documentation lists slashing, meaning penalties, for validators who do.
| Feature | XDC Network |
|---|---|
| Type | EVM-compatible layer-1 |
| Consensus | XDPoS 2.0 (delegated proof of stake) |
| Active validators | 108 masternodes |
| Minimum masternode stake | 10,000,000 XDC |
| Block time | About 2 seconds |
| Private chains | XDC Subnets |
What is the XDC token used for?
The XDC token has three jobs. It pays transaction fees, it is the stake that masternodes put up, and it is what holders stake to vote for masternode candidates. Block rewards are paid in XDC to masternodes and voters.
Unlike Bitcoin, XDC was not mined into existence. The supply was created when the network launched, and new XDC is added over time as masternode rewards. Supply figures on third-party sites vary, so check a current, official source if a number matters to you.
Who runs XDC Network?
XDC grew out of XinFin, short for eXchange inFinite, a Singapore-based fintech. Atul Khekade is a co-founder of XinFin.
The XDC Foundation was formed in mid-2021 through a grant from XinFin. It is described as an independent, community-focused body that supports ecosystem development. Day-to-day block production is done by the 108 masternode operators.
How is XDC used in trade finance?
XDC’s trade finance use is tokenization: turning a paper instrument into a digital token that can be financed, sold or settled on-chain. XDC lists invoices, bills of lading (the document that shows who owns goods in transit), letters of credit and receivables as examples. For background on the wider trend, see our explainer on real-world asset tokenization.
A few documented examples:
- Tradeteq, 2021. XinFin and Tradeteq, a trade finance distribution platform, announced a partnership to turn trade finance assets into NFTs. The first transaction was on September 20, 2021, with invoice finance company Accelerated Payments as the originator, according to Forkast.
- USDC, 2025. Circle announced on September 17, 2025 that USDC and its Cross-Chain Transfer Protocol (CCTP V2) were live on XDC Network. Circle’s post lists global trade finance as a use case and names SBI XDC Network APAC as an example.
- Legal groundwork. XDC points to laws that let electronic trade documents replace paper, including the UN Model Law on Electronic Transferable Records and the UK’s Electronic Trade Documents Act of 2023. Those laws apply to digital documents in general, not to XDC specifically.
Treat partnership lists you see online with care. A pilot, a memorandum of understanding and live production use are very different things. Look for the partner’s own press release.
What does XDC have to do with ISO 20022?
XDC’s documentation says the network is designed with ISO 20022 compatibility, so it can integrate with messaging systems used by banks. ISO 20022 is a messaging standard: a common format banks use to write payment instructions. Software can be built to read and write those messages.
That is different from the popular claim that certain coins are “ISO 20022 compliant.” No standards body certifies cryptocurrencies under ISO 20022. We cover this in detail in why the ISO 20022 coin list never existed. The same test applies to XDC: a claim about software that speaks the standard is not a certificate for the token.
What are the risks?
- Concentrated validation. 108 masternodes is a small set, and the 10,000,000 XDC minimum stake means running one takes significant capital.
- Adoption claims vs. usage. Enterprise announcements do not always turn into live, high-volume use. Check whether a deal is a pilot or in production.
- Token demand. Businesses can use the network while paying only small fees, so enterprise use does not necessarily mean large demand for the XDC token.
- Bridges and stablecoins. Moving assets between chains adds smart contract risk, and stablecoins carry issuer risk.
- Price volatility. XDC can move sharply in either direction. Nothing here is a forecast.
A checklist for XDC claims
- Find the primary source. Look for the partner’s own announcement, not a repost or a screenshot.
- Ask what stage it is. Pilot, memorandum, or live production with real volume.
- Check which chain. Confirm the announcement involves the public XDC mainnet, not only a private subnet or a different network.
- Separate the network from the token. Ask whether the use case requires holding XDC or only paying small fees.
- Read ISO claims precisely. Software compatibility is not token certification.
- Test first. If you move XDC, confirm your wallet supports the XDC network and send a small test transaction first.
What to watch next
The useful signals are measurable ones: tokenized trade finance volume on the public mainnet, how much USDC is actually held and moved on XDC, and whether announced pilots reach production. For comparison with a different settlement network, see our explainer on the XRP Ledger.
Sources
Sources
- Now Available: USDC & CCTP V2 on XDC Network, Circle
- XDC Architecture, XDC Network
- ISO 20022 Integration, XDC Network
- XDC MiCA White Paper, XDC Network
Frequently asked questions
What is XDC Network?
XDC Network is an open-source, EVM-compatible layer-1 blockchain that uses delegated proof of stake. It is designed for trade finance, real-world asset tokenization and payments, and supports both a public network and private enterprise chains called subnets.
What is the XDC token used for?
XDC pays transaction fees on the network, and it is staked to run masternodes or to vote for masternode candidates. Rewards for block production are paid to masternodes and voters in XDC.
How many masternodes does XDC have?
108 active masternodes produce and validate blocks, according to XDC's documentation. Running one requires a minimum stake of 10,000,000 XDC.
Is XDC ISO 20022 compliant?
No coin is certified as ISO 20022 compliant, because ISO 20022 is a messaging standard for banks with no certification process for cryptocurrencies. XDC says its solutions support ISO 20022 compatibility, which is a claim about software, not the token.
Who runs XDC Network?
XDC grew out of XinFin, a Singapore-based fintech. The XDC Foundation, formed in mid-2021 through a grant from XinFin, supports ecosystem development. Blocks are produced by the masternode operators.
Education and commentary only, not financial advice. Crypto is volatile and you can lose money. Do your own research and speak to a qualified advisor before making investment decisions. Figures are as of November 6, 2026 and may have changed since.
