Priya PatelTLDR:
- Xalts acquires Contour Network after bankruptcy announcement in October.
- Contour Network, supported by major banks, aimed to digitize and streamline trade processes.
Digital Trade Finance Gets a Lifeline: Xalts to Acquire Contour Network
The world of digital trade finance saw a significant development as Singapore-based fintech start-up Xalts announced the acquisition of Contour Network. Contour, launched in 2020 by major banks like ANZ, BNP Paribas, HSBC, and Standard Chartered, aimed to digitize and streamline trade processes in collaboration with various partners and industry integrators.
The acquisition by Xalts comes after Contour announced bankruptcy in October 2023 due to a lack of funding from its major bank shareholders. This move by Xalts provides a second chance for Contour to make an impact in the trade finance industry under a new company umbrella, potentially revitalizing the digitalization movement.
With plans to utilize Contour’s industry-standard workflows and integrations, Xalts aims to enhance communication and transactions between enterprises and financial institutions within the network. This strategic acquisition not only saves Contour from collapse but also offers an opportunity for Xalts to rapidly expand its current model by leveraging Contour’s standing and connections in the industry.
Looking ahead, the partnership between Xalts and Contour is set to focus on embedded trade and supply chain finance solutions, offering integrated solutions on a single platform to minimize costs and time for participants. The next steps in integrating and growing both platforms will be crucial for the continued progress of digitalizing trade finance solutions, potentially reshaping the industry landscape.
