Publicly-backed XREX raises $17M to unravel dollar liquidity problems through blockchain
Aug 23, 2021 10:56 UTC
Aug 23, 2021 at 10:56 UTC
Blockchain technology is being posited as a possible resolution to U.S. dollar liquidity problems in rising markets.
Blockchain fintech company XREX has all over a $17 million pre-A investment spherical light-emitting diode by a syndicate of worldwide investors, underscoring heightened institutional demand for crypto-focused startups.
The syndicate was driven by CDIB Capital Group, a publicly listed company in Taiwan, and includes investors from major banks and capital companies in North America, Europe and Asia.
Several alternative publicly listed corporations jointly participated within the investment spherical, together with SBI Investment, that may be a subsidiary of SBI Holdings, ThreeD Capital, E.Sun capital and Systex Corporation. Black Marble, New Economy Ventures, Metaplanet Holdings, Angel Group and therefore the Taiwan government’s National Development Fund also participated within the round.
XREX aforementioned the funds are going to be accustomed to expand its currency portfolio, acquire licenses and enter into new partnerships with money establishments and digital billfold suppliers. The company’s reported mission is to utilize blockchain technology to unravel greenback liquidity shortages in rising markets.
While the U.S. dollar’s position as world reserve currency is under threat due to huge intervention from the Federal Reserve System and de-dollarization efforts in China and Russia, the buck remains the foremost widely used currency within the world. Because the Bank for International Settlements explained in its 2020 U.S. greenback funding report, the buck accounts for over 80% of interchange dealing volume. It conjointly represents over an hour of official interchange reserves.
The Covid-19 pandemic places extra strain on U.S. greenback liquidity, particularly in rising markets that believe heavily on the buck. These liquidity problems were impacting world commerce and trade long before the pandemic took root. Case in point: A 2019 Asian Development Bank trade finance survey found that almost 30% of respondents cited greenback liquidity as a serious obstacle.
XREX co-founder and corporate executive 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 firm is functioning with regulators and money establishments to develop tools that may aid merchants and little businesses in rising markets to scale back forex loss and gain a lot of reliable access to U.S. dollars.
Published at Mon, 23 Aug 2021 10:56:18 +0000