Publicly-backed XREX raises $17M to unravel greenback liquidity issues via blockchain


Blockchain know-how is being posited as a doable decision to U.S. greenback liquidity issues in rising markets.

Blockchain fintech firm XREX has throughout a $17 million pre-A funding spherical light-emitting diode by a syndicate of worldwide buyers, underscoring heightened institutional demand for crypto-focused startups.

The syndicate was pushed by CDIB Capital Group, a publicly listed firm in Taiwan, and consists of buyers from main banks and capital corporations in North America, Europe and Asia.

Several various publicly listed firms collectively participated throughout the funding spherical, along with SBI Investment, that could be a subsidiary of SBI Holdings, ThreeD Capital, E.Sun capital and Systex Corporation. Black Marble, New Economy Ventures, Metaplanet Holdings, Angel Group and subsequently the Taiwan authorities’s National Development Fund additionally participated throughout the spherical.

XREX aforementioned the funds are going to be accustomed to develop its foreign money portfolio, purchase licenses and enter into new partnerships with cash institutions and digital billfold suppliers. The firm’s reported mission is to make the most of blockchain know-how to unravel dollar liquidity shortages in rising markets.

While the U.S. greenback’s place as world reserve foreign money is beneath menace resulting from large intervention from the Federal Reserve System and de-dollarization efforts in China and Russia, the buck stays the foremost extensively used foreign money throughout the world. Because the Bank for International Settlements defined in its 2020 U.S. dollar funding report, the buck accounts for over 80% of interchange dealing quantity. It conjointly represents over an hour of official interchange reserves.

The Covid-19 pandemic locations further pressure on U.S. dollar liquidity, notably in rising markets that consider closely on the buck. These liquidity issues had been impacting world commerce and trade lengthy earlier than the pandemic took root. Case in level: A 2019 Asian Development Bank trade finance survey discovered that just about 30% of respondents cited dollar liquidity as a critical impediment.

XREX co-founder and company government Wayne Huang aforementioned, “We keenly perceive the struggles Janus-faced by several cross-border merchants who  lacks safe access to U.S. greenback liquidity.” In response, his agency is functioning with regulators and cash institutions to develop instruments that will help retailers and little companies in rising markets to cut back foreign exchange loss and acquire a number of dependable entry to U.S. {dollars}.


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