CFX Labs has raised $9.5 million in seed investments to expand its Solana-based stablecoin payment and remittances network.
The US-based fintech firm said in a press release on Wednesday that the fundraising was oversubscribed, with Shima Capital, Decasonic, Antalpha, CMT Digital, Corazon Capital, Kraken Ventures, New Form Capital and Illinois-based Metropolitan Capital Bank & Trust all participating.
“This seed round represents the conviction our investors have in our platform and its potential,” said Nick Cavet, co-founder and CEO of CFX Labs. “CFX is not just accelerating the movement of money; we’re transforming the very fabric of the global money movement to unlock entirely new monetization opportunities for the real producers and consumers of our shared economy.”
According to the release, the company plans to use the funds to continue developing its technology and fuel its global expansion efforts, with the objective of reaching 1.2 billion people by the second quarter of 2024.
CFX Labs’ payment network facilitates the transfer of fiat dollars internationally to countries like India, Mexico, and Nigeria. The system leverages the company’s proprietary stablecoin, fxUSD, and employs the Solana blockchain as the payment rail for transactions.
Users also have access to the option of initiating money transfers from convenience stores across the US, such as Walmart, CVS, Walgreens, and Rite-Aid. Customers can deposit cash and receive digital money in CFX Labs’ MoveMoney embedded wallet.
MoveMoney has garnered 4000 users since its launch last month, founder Nick Cavet told CoinDesk.
The company sees expanding its remittances network as a key goal moving forward. By minimizing unnecessary costs and enhancing access to more secure funds, the company hopes to “stimulate economic growth, enhance global commerce, improve international remittances, and reduce inequality,” it said in its release.
Due to their ability to settle transactions almost instantly, provide lower fees, and operate 24/7 on the blockchain, remittances are one of the key use cases for stablecoins. U.S. dollar-backed stablecoins play a pivotal role in connecting traditional currencies with blockchain-based digital assets.
“There has never been a better moment to initiate more meaningful and transformative financial systems around the world, and it starts with better access to efficient, secure and rapid payment transfers,” the company said in the release. “CFX Labs’ payment network stands to expand beyond remittances internationally between the Americas, to global international money transfer and remittances, a market valued in trillions of dollars.”