OpenFX Raises $23 Million: Can Stablecoins Reconstruct Global Cross-Border Payments?
Against the backdrop of a continuously warming stablecoin race, infrastructure startup OpenFX recently completed a $23 million financing round, led by top venture capital firm Accel, aiming directly at the last-mile dilemma of cross-border payments. Founded by former FalconX founder Prabhakar Reddy, the company seeks to replace the traditional SWIFT network with stablecoins, allowing global capital flows to be as instantaneous and low-cost as data transmission.
1. The Last Mile Dilemma of Stablecoins
Although stablecoins like USDT and USDC enable nearly instantaneous and low-cost on-chain transfers, converting them to fiat currency still relies on the traditional banking system, resulting in:
High transaction fees with foreign exchange spreads of about 69 basis points
Slow settlement with traditional cross-border payments taking 1-5 days
Geographical restrictions where some countries cannot directly use stablecoins
OpenFX's solution is to use stablecoins as intermediaries, connecting global fiat channels, compressing foreign exchange spreads to below 10 basis points, and completing 90% of transactions within 60 minutes.
2. Benchmarking Bridge acquired by Stripe, but at a deeper level
Bridge/BVNK: Helping businesses convert between fiat and stablecoins, like SpaceX receiving payments via Bridge and Deel using BVNK for payroll.
OpenFX: Focused on backend infrastructure, directly optimizing the foreign exchange conversion process, aiming to replace SWIFT.
3. The Founder's Ambition for a 'Payment Revolution'
Reddy's previous company FalconX, valued at $8 billion, made him acutely aware of the inefficiencies in traditional cross-border payments: the SWIFT network is fragmented, while stablecoins could become a new financial railroad. OpenFX currently supports seven currencies including the US dollar, euro, and peso, with plans to expand into Southeast Asia within the year, with clients including fintech companies like Revolut and Remitly.
4. The Moment for Stablecoins to Break Through?
As giants like Meta explore stablecoin integration and U.S. legislation advances, OpenFX's efforts could become a key piece of the puzzle—only when stablecoins can be seamlessly converted into everyday fiat currency can they truly become a killer application. If successful, global capital flows may usher in a revolution similar to the digitization of the internet.
Conclusion
OpenFX's ambition is not just to optimize payments but to reconstruct financial infrastructure. Amid the dual waves of AI and cryptocurrency, stablecoins are transitioning from speculative tools to practical pipelines, and whoever can solve the last mile may define the next generation of the global financial network.
