Publicly-backed XREX raises $17M to resolve greenback liquidity points by means of blockchain

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Blockchain fintech firm XREX has concluded a $17 million pre-A funding spherical led by a consortium of worldwide buyers, underscoring heightened institutional demand for crypto-focused startups. 

The consortium was pushed by CDIB Capital Group, a publicly traded firm in Taiwan, and contains buyers from main banks and enterprise capital companies in North America, Europe and Asia.

A number of different publicly listed firms additionally participated within the funding spherical, together with SBI Funding, which is a subsidiary of SBI Holdings, ThreeD Capital, E.Solar Enterprise Capital and Systex Company. Black Marble, New Financial system Ventures, Metaplanet Holdings, Seraph Group and the Taiwan authorities’s Nationwide Improvement Fund additionally participated within the spherical.

XREX stated the funds might be used to increase its fiat foreign money portfolio, purchase licenses and enter into new partnerships with monetary establishments and digital pockets suppliers. The corporate’s reported mission is to make the most of blockchain know-how to resolve greenback liquidity shortages in rising markets.

Though the U.S. greenback’s place as international reserve foreign money is below risk as a result of large intervention from the Federal Reserve and de-dollarization efforts in China and Russia, the buck continues to be probably the most extensively used foreign money on the earth. Because the Financial institution for Worldwide Settlements defined in its 2020 U.S. greenback funding report, the buck accounts for nicely over 80% of overseas change transaction quantity. It additionally represents greater than 60% of official overseas change reserves.

The Covid-19 pandemic launched extra strains in U.S. greenback liquidity, particularly in rising markets that rely closely on the buck. These liquidity points have been impacting international commerce and commerce lengthy earlier than the pandemic took root. Working example: A 2019 Asian Improvement Financial institution commerce finance survey discovered that almost 30% of respondents cited greenback liquidity as a serious impediment.

XREX co-founder and CEO Wayne Huang stated, “We keenly perceive the struggles confronted by many cross-border retailers who lack secure entry to U.S. greenback liquidity.” In response, his agency is working with regulators and monetary establishments to develop instruments that may help retailers and small companies in rising markets to scale back foreign exchange loss and acquire extra dependable entry to U.S. {dollars}.

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