Applications and Use Cases

Blockchain Startup XREX Raises $17 Million to Help Businesses with Cross-Border Financial Transactions

August 25, 2021

Taiwanese blockchain startup XREX has raised $17 million in a pre-Series A funding round. The company specializes in helping cross-border businesses in emerging markets to perform quicker transactions using features like its payment escrow service and crypto-fiat exchange platform.

Some of the new funds will be used to apply for financial licenses in Singapore, Hong Kong and South Africa. They will also be used to help XREX partner with banks and financial institutions like payment gateways.

XREX Crypto services is designed to give merchants, particularly in countries with low U.S.-dollar liquidity, tools for trading in digital fiat currencies. The company's blockchain platform enables merchants and their customers to use XREX's wallet, including a commercial escrow service known as Bitcheck. The offering is similar to having a standby letter of credit from a commercial bank, as buyers may use it to guarantee they can make payments. The Bitcheck service uses digital currencies like USDT and USDC that are pegged to the U.S. dollar.

“They have to get quick access to the U.S. dollar and be able to pay it out quick enough for them to secure important commodities that they want to import, and that’s the problem we want to solve,” Wayne Huang, co-founder and CEO of XREX, told TechCrunch of his customers.

Merchants using the platform pay stablecoin to suppliers and XREX escrows those funds until the supplier provides proof of shipment. Then a payment is made to them. The crypto-fiat exchange features enables users to convert USDT and USDC to U.S. dollars, which may be withdrawn and deposited through the platform as well.

Some of the new funds will also be used to expand XREX's fiat platform. The company's partners include compliance and anti-money-laundering providers like CipherTrace, TRISA and Sum&Substance. The funds will also be used to expand security and compliance features like Public Profiles, which are mandatory for the company's customers and use a Reputation Index to boost transparency.

Edited by Luke Bellos



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