TAIPEI / SINGAPORE, Dec. 09, 2020 (GLOBE NEWSWIRE) — (via Blockchain Wire) — XREX (https://www.xrex.io/), a blockchain TradeTech company serving cross-border businesses that operate in emerging economies, today announced the launch of MyXchange, a first-of-a-kind digital currency Exchange-as-a-Service (EaaS) platform.
MyXchange makes it easy for any Money Transfer Organization (MTO) to run a secure crypto-fiat exchange that features full Know Your Customer (KYC), Anti-Money Laundering (AML), liquidity, wallet security, and fiat (US Dollar, Indian Rupee) on-off ramps. In the same way that Shopify makes it easy to launch an online store, MyXchange simplifies creating a secure exchange, passing along low fees with seamless cross-border escrowed payments across emerging markets.
XREX is backed by well-known venture capital firms AppWorks, WI Harper, BlackMarble, and CDIB (TWSE: 2883), along with Taiwan’s National Development Fund and Skype’s co-founders Toivo Annus and Jaan Tallinn.
As oil prices fall, according to an earlier Bloomberg report (1), “the Nigerian government’s coffers have emptied after crude prices plunged in the wake of the coronavirus pandemic,” and “Nigeria’s foreign-currency shortage is squeezing the life out of Africa’s biggest economy.”
“A lot of the members can’t access the amount of dollars they need from the banks,” said Eke Ubiji, executive secretary of the Nigerian Association of Small and Medium Enterprises. “That is constraining business.”
Financial Times also recently wrote about this African dollar shortage issue (2): “Nigeria imports the vast majority of its raw materials and goods, and companies across the spectrum, from big conglomerates to small manufacturers, are being hit,” said Muda Yusuf, head of the Lagos Chamber of Commerce and Industry, the country’s largest business lobby.
“Some of [our members] said they were about to lose their credit lines,” he said. “Businesses are likely to go under, if some of them have not already gone under.”
The dollar crunch has caused most banks to avoid these high-volatility markets, making it difficult for merchants to secure letters of credit or credit insurances. It’s also caused the invoice-to-pay processes to become even more slow and risky.
The XREX MyXchange fixes this situation in one simple, SaaS-based, fully auditable solution. Licensed Money Transfer Organizations (MTOs) / Money Transfer Services (MTSs), Money Service Businesses (MSBs), and digital currency service providers can help mitigate these issues by using MyXchange to launch their crypto-fiat exchanges. Until now, these MTOs have had to either outsource this technology or build it from scratch.
Building an exchange in-house requires tremendous resources to find and pay liquidity providers, custodians, KYC providers, AML providers, and cybersecurity providers, as well as convince banks to serve as fiat on-off ramps. Outsourcing to an “exchange managed services (white label) provider” often requires an investment of over $1 million.
“Much like building an e-commerce website was a lengthy, expensive undertaking at the turn of the century, developing an exchange is an onerous process today,” said Wayne Huang, CEO of XREX. “More MTOs see the advantages of offering their own suite of digital currency services, and MyXchange provides tools to make it easier than ever to deploy a full-service exchange.”
All XREX platforms are powered by CipherTrace AML and Sum&Substance KYC. Additionally, XREX is working with TRISA.io as the FATF Travel Rule solution.
XREX has seen significant traction among global MyXchange alpha testers, including merchants and MTOs in India, Africa, and the Middle East. The B2B global payment volume is projected to reach $63 trillion by 2026 (3), driven by a rise in the availability of new payment options.
Emerging market’s increase in crypto adoption (Reuters (4), Decrypt (5)) has given MTOs new opportunities to help enterprises and merchants securely and efficiently send money across emerging markets. With MyXchange, XREX provides all of the technology needed for MTOs to facilitate international trade finance, whether it’s serving cross-border commodity trading or providing fiat bridges for offshore dollar banking. At launch, the following trading pairs will be available in cryptocurrency: BTC, BCH, ETH, XRP, USDT, and in fiat: USD, INR.
All XREX platforms are powered by CipherTrace AML and Sum&Substance KYC. Additionally, XREX is working with TRISA.io as the FATF Travel Rule solution.
For more MyXchange information, please visit https://www.myxchange.io as well as the XREX medium blog: https://medium.com/xrexinc/xrex-launches-myxchange-for-money-transfer-organizations-2970e1a9ec16
About XREX
XREX Inc. (https://www.xrex.io/) is a blockchain TradeTech company for cross-border merchants and global enterprises. XREX’s Exchange-as-a-Service “MyXchange” is a compliant, secure, scalable SaaS for organizations to offer crypto-fiat markets, commercial escrow services, trade financing, digital wallets, and fiat on-off ramps. Along with the Taiwanese Government’s National Development Fund and Skype co-founders Toivo Annus and Jaan Tallinn, XREX is backed by AppWorks, WI Harper, BlackMarble, and CDIB (TWSE: 2883).
Media Contact: Transform Group, xrex@transformgroup.com
Company Contact: pr@xrex.io
(1) Bloomberg: Dollar Squeeze Chokes Nigeria’s Economy as Recession Looms, Aug 17, 2020
https://www.bloomberg.com/news/articles/2020-08-17/dollar-squeeze-chokes-nigeria-s-economy-with-recession-looming
(2) Financial Times: Dollar shortage squeezes World Bank-backed Nigeria power plant, Sep 10, 2020
https://www.ft.com/content/47aee107-c30d-4ece-b146-68d6a56decc7
(3) Acumen Research: B2B Payment Transaction Market Size Worth Around US $63,084 Bn by 2026, Apr 14, 2020
https://www.alliedmarketresearch.com/press-release/remittance-market.html
(4) Reuters: How bitcoin met the real world in Africa, Sep 8, 2020
https://www.reuters.com/article/us-crypto-currencies-africa-insight-idUSKBN25Z0Q8
(5) Decrypt: Nigeria Is Emerging as a True Bitcoin Nation, Nov 27, 2020
https://decrypt.co/49487/nigeria-is-emerging-as-a-true-bitcoin-nation