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XREX Accrues $17 Million Funding from pre-A Investment Round to Address Dollar Issue with Blockchain

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by Tolu Ajiboye · 3 min read
XREX Accrues $17 Million Funding from pre-A Investment Round to Address Dollar Issue with Blockchain
Photo: XREX

The XREX funding is to expand its fiat portfolio, procure licenses, and form new partnerships with financial institutions and digital wallet providers.

Blockchain fintech firm, XREX Inc., has secured $17 million in funding from a consortium of global investors to solve dollar liquidity shortages via blockchain technology. The blockchain Trade Tech firm just concluded the pre-A investment round led by CDIB Capital Group – a private development-oriented financial institution. 

CDIB is a publicly traded company also based in Taiwan. It has a huge investment pool of leading banks and venture capital firms across North America, Europe, and Asia.

In addition to this, a host of other publicly listed companies also took part in the investment round. They include SBI Investment – a subsidiary of SBI Holdings, ThreeD Capital, E.Sun Venture Capital, Systex Corporation, and Black Marble. Furthermore, New Economy Ventures, Metaplanet Holdings, Seraph Group, and the Taiwanese government’s National Development Fund also played a part in the investment round.

XREX intends to use the funds to undertake a string of projects. These include expanding its fiat currency portfolio, procuring licenses, and new partnerships with several financial institutions and digital wallet providers. The core of the Taiwanese fintech company’s objectives is to use blockchain as a sustainable stopgap for dollar shortages in emerging markets.

According to XREX’s co-founder and CEO Wayne Huang:

“We keenly understand the struggles faced by many cross-border merchants who lack safe access to U.S. dollar liquidity.”

XREX Funding Comes Amid Dollar’s Uncertain Future

The dollar still stands as the most widely used currency in the world and a global reserve currency. However, its position has come under threat from Federal Reserve intervention and de-dollarization efforts in China and Russia.

China has prioritized the People’s Bank of China’s (PBoC) development of a digital currency. The eastern nation is developing a domestic payment system that could serve as an alternative to US-controlled corridors of trade. These encompass global, economic, financial, trade, and technology networks.

Russia is also seeking to insulate its economy from current and potential US sanctions by calling for de-dollarization. Between 2013 and 2020, Russia’s central bank cut the share of its dollar-denominated reserves by more than half.  

Despite anti-dollar efforts, the currency makes up over 80% of foreign exchange transaction volume. This is according to the Bank for International Settlements in its US dollar funding report for 2020. In addition to this, more than 60% of official foreign exchange reserves are in US dollars.

Dollar liquidity came under additional pressure during the pandemic, most apparent in areas that rely heavily on the fiat note. It should also be noted that some of these markets were already feeling the liquidity strain of the dollar long before Covid began. For instance, a survey from the Asian Development Bank in 2019 stated that about 30% of people surveyed said dollar liquidity was a major hurdle in doing business.

Business News, Market News, News
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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