Source: Fortune
Summary
XFX, a Miami-based startup, has raised $17 million in a Series A fundraise to make foreign exchange processes more efficient for fiat and stablecoins. The company, founded by three former Bitso employees, aims to create deep liquidity in a subset of currencies, starting with the U.S. dollar, Mexican peso, and Colombian peso. XFX’s clients include financial institutions, money transmitters, and crypto exchanges. The startup plans to hire more “quants” and expand its relationships with trading desks and banks.
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The numbers tell one story.
XFX is riding the stablecoin wave, with investors like Castle Island Ventures, Haun Ventures, and Coinbase Ventures backing its $17 million Series A round. The startup’s goal is to match the speed of stablecoins with efficient foreign exchange processes. With its new funding, XFX will hire more “quants” and expand its relationships with trading desks and banks. As the stablecoin market heats up, XFX is positioning itself as a key player.
XFX’s founders, all former Bitso employees, know the pain points of exchanging stablecoins for Latin American fiat currencies. They’re building an “engine” to match buyers and sellers more easily, aiming for deep liquidity in a subset of currencies. With Mastercard’s recent acquisition of BVNK for up to $1.8 billion, the stablecoin market is getting hotter by the day.
The company’s focus on a subset of currencies, rather than breadth of coverage, is a strategic move. By creating deep liquidity in a few key currencies, XFX can reduce transaction fees and speed up cross-border payments. As the stablecoin market continues to grow, XFX is well-positioned to capitalize on the trend.
As one observer noted, “They’re building FX and payment infrastructure that matches the speed of stablecoins.” With its new funding and strategic approach, XFX is ready to take on the challenge of making foreign exchange processes more efficient for fiat and stablecoins.
Author: Evan Null
