Addressing Cross-Border Payment Hurdles

Australian businesses have historically faced significant challenges when conducting transactions with their U.S. counterparts. Traditional banking systems often impose high transaction fees and lengthy settlement times, which can take between 4-5 days. In the fast-paced business world, such delays can lead to considerable frustration and operational inefficiencies. To overcome these obstacles, XDC Network has introduced a new blockchain-based payments infrastructure specifically designed for business transactions between Australia and the United States. Sean White, BD and Ecosystem Manager at Australia XDC Network, shared insights into how this innovative infrastructure is poised to disrupt traditional banking methods.

The Significance of the AUDD–USDC Liquidity Pool

XDC Network has recently launched an AUDD–USDC liquidity pool on Curve Finance. This development is particularly relevant for businesses engaged in moving money between Australia and the U.S. Sean White explained that cross-border payments are currently at a critical juncture. Businesses are increasingly unwilling to tolerate settlement periods of 3-5 days and fees ranging from 3-7% when faster and more cost-effective technological solutions are available. The new AUDD–USDC pool offers Australian and U.S. counterparties a direct, on-chain settlement pathway that is faster, cheaper, and more transparent, while still adhering to compliance requirements.

How XDC Enables Near-Instant Settlement

Sean White elaborated on how XDC facilitates near-instantaneous AUD–USD settlement compared to conventional banking methods. He noted that traditional banking systems rely on a multitude of intermediaries and batch processing for transactions. In contrast, XDC enables value to move directly on-chain. AUDD functions as a fully reserved digital representation of the Australian dollar, while USDC serves the same purpose for the U.S. dollar. The Curve pool enhances deep liquidity between these two stablecoins, facilitating near-instant conversions with minimal slippage. Settlement occurs at the blockchain layer, bypassing the multiple correspondent banks that typically cause delays and incur costs in traditional systems.

Australian Businesses' Response to Digital Currency Adoption

The International Monetary Fund (IMF) has identified the Asia-Pacific (APAC) region as a global leader in digital currency adoption. Sean White reported a strong level of interest from Australian businesses, particularly from exporters, payment providers, and trade finance platforms. Although the launch is relatively recent, demand is primarily driven by the need for efficient settlement of trade invoices, effective treasury management, and streamlined cross-border supplier payments.

Advantages Over Correspondent Banking and Addressing Concerns

XDC’s U.S. dollar infrastructure has reportedly processed over US$1 billion in transactions within the last 90 days. Sean White highlighted the significant advantages this offers over correspondent banking, including enhanced speed, reduced costs, and improved predictability. Blockchain-based settlement eliminates hidden fees, mitigates time zone delays, and resolves reconciliation issues. Regarding regulatory and security concerns, White emphasized that XDC is engineered for institutional use. It is ISO 20022-compliant and designed to interoperate with existing financial messaging standards. Security is addressed at both the protocol level and through the enterprise-grade infrastructure employed by participants, ensuring a robust and secure system.

Expanding Global Trade and Payments Momentum

AUDD is already in active use in live trade initiatives across Asia and the Middle East. The expansion into the Australia–U.S. corridor represents a natural progression of this momentum. AUDD has proven its efficacy as a settlement asset in trade corridors involving Asian markets such as Hong Kong, Singapore, and the UAE. The Australia–U.S. corridor introduces greater scale and global relevance. By connecting these diverse corridors through shared on-chain liquidity, XDC Network aims to foster a truly interconnected trade settlement network, moving away from isolated bilateral systems.

Practical Steps for Australian Businesses

Small and Medium-sized Enterprises (SMEs) often bear the brunt of high cross-border fees. Sean White advised Australian businesses to begin by collaborating with payment providers or platforms that are already integrating XDC. Many such entities are incorporating this infrastructure directly into their service offerings. This enables businesses to settle invoices, manage treasury funds, or finance trade using stablecoins like AUDD without necessitating significant changes to their existing core operations. Recognizing the importance of trust, XDC prioritizes enterprise-grade security, compliance, and adherence to standards like ISO 20022 to ensure a frictionless adoption process.

XDC Network's Vision for Global Trade and Payments

This latest launch underscores XDC Network’s commitment to real-world adoption rather than theoretical applications. Stablecoins are increasingly becoming the preferred method for cross-border payments, and XDC is positioning itself as the blockchain layer that regulated institutions and businesses can effectively utilize. The overarching goal is to modernize global trade and payments infrastructure, starting with a strong presence in APAC and extending to a worldwide reach.