XREX, a blockchain finetech company, has received a $17 million pre-investment round led by a consortium of global investors, demonstrating institutional demand for crypto-focused startups.
Blockchain Finetech company XREX has ended up with a $17 million pre-investment round led by a consortium of global investors underscoring the institutional demand for crypto-focused startups.
The consortium was motivated by CDIB Capital Group which is a publicly traded company in Taiwan and has investors from major banks and venture capital firms in North America, Europe and Asia. There are other publicly listed companies who participated in the investment round such as SBI investment, which is a subsidiary of SBI holdings, ThreeD Capital, E.Sun Venture Capital and Systex corporation. Black Marble, New Economy Ventures, Metaplanet Holdings, Seraph Group and the Taiwan government’s National Development Fund also took part in the round.
XREX believes the funds will be used in a good way to expand its fiat currency portfolio which gets licenses and enter into new partnerships with financial institutions and digital wallet providers. The company’s mission is to completely use blockchain technology to solve dollar liquidity shortages in upcoming markets. While the U.S dollar’s position as global reserve currency is in danger because of the huge intervention from Federal Reserve and de-dollarization efforts in China and Russia the greenback is the most used currency in the world. The bank for international settlements explained it in 2020 U.S dollar funding report, the greenback accounts for 80% of foreign exchange transaction volume. It gives more than 60% of official foreign exchange reserves.
The covid-19 pandemic has increased strain on U.S dollar liquidity mostly in upcoming markets that depend on the greenback. These liquidity issues were affecting global commerce and trade long before the pandemic started. A 2019 Asian Development Bank Trade finance survey found that almost 30% of respondents cited dollar liquidity as a major problem. XREX co-founder and CEO Wayne Huang said, “we keenly understand the struggles faced by many cross-border merchants who lack safe access to U.S dollar liquidity.” His firm is working with regulators and financial institutions to create tools which will help merchants and small business in upcoming markets to deduct forex loss and gain more reliable access to U.S dollars.