23.August.2021 – Taipei – based, Blockchain startup XREX announced that it raised USD 17 Million in a pre-Series A funding round. The round was led by CDIB Capital Group.
The participants of this round were ThreeD capital, Systex Corporation, SBI Investment, E.Sun Venture Capital, Global Founder Capital, MetaPlanet Holdings, BlackMarble, AppWorks, Seraph Group, and New Economy Ventures.
This fund raised will be used for financial licenses in Hong Kong, South Africa and Singapore and partners with financial institutions and banks like payment gateways. It will also be used to expand its fiat currency platform, though Huang said it doesn’t plan to add too many cryptocurrencies “because we’re not built for crypto traders, we’re built for businesses and brand really matters to them. Brand and compliance, so whatever the U.S. Comptroller of the Currency says is a good stablecoin is what they’re going to use.” It will also expand its security and compliance features, which includes Public Profiles, which are necessary for customers, and user Reputation Index for transparency increment.
Words from the investors –
In a statement about the latest funding done by CDIB Capital Innovation Fund, its head Ryan Kuo said, “CDIB was an early investor in XREX. After witnessing the company’s fast revenue growth and their commitment to compliance, we were determined to double our investment and lead this strategic round.”
About XREX –
XREX was initiated for helping cross-border business to perform faster by Wayne Huang in 2018. The startup closed its seed round in 2019 with bagging USD 7 Million.
“We specifically wanted to build a regulatory-friendly cap table,” XREX co-founder and chief executive officer Wayne Huang said. “It’s really hard for a startup like us to raise from banks and public companies, but as you can see, this round we deliberately did that and we were successful.”
“We ran into all sorts of cross-border money transfer issues. It seemed almost unstoppable,” Huang said. “Growing up in the U.S. and then in Taiwan, we were not exposed to those issues. So that planted a seed, and then when Satoshi [Nakamoto] published the bitcoin white paper, of course that was a big thing for all cybersecurity experts.”
XREX Crypto Services gives tools for conducting trade in digital currencies, merchants living in countries that have low US Dollars liquidity. “They have to get quick access to the U.S. dollar and be able to pay it out quickly enough for them to secure important commodities that they want to import, and that’s the problem we want to solve,” said Huang.
XREX’s crypto-fiat exchange allows the platform users to change USDT and USDC to U.S. dollars, which they can deposit and withdraw through the platform only.
Some of the partners of the XREX include anti-money laundering providers and compliance like TRISA, Sum&Substance and CipherTrace.
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