CFX Labs, a US-based fintech firm, announced on Wednesday that it has successfully raised $9.5 million in seed investments to expand its Solana-based stablecoin payment and remittances network. The fundraising round was oversubscribed, with participation from prominent investors including Shima Capital, Decasonic, Antalpha, CMT Digital, Corazon Capital, Kraken Ventures, New Form Capital, and Metropolitan Capital Bank & Trust.
“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.”
Expansion Plans and Objectives
With the newly acquired funds, CFX Labs aims to continue developing its technology and fuel its global expansion efforts. The company has set a target of reaching 1.2 billion people by the second quarter of 2024.
CFX Labs’ payment network enables the seamless transfer of fiat dollars to countries such as India, Mexico, and Nigeria. Supported by the Solana blockchain, the system leverages the company’s proprietary stablecoin, fxUSD, as the payment rail for transactions. Users can also initiate money transfers from convenience stores across the US, such as Walmart, CVS, Walgreens, and Rite-Aid, with the option to deposit cash and receive digital money in CFX Labs’ MoveMoney embedded wallet.
“MoveMoney has gained 4000 users since its launch last month,” revealed founder Nick Cavet to CoinDesk, highlighting the rapid adoption of the platform.
Focus on Remittances and the Global Money Movement
CFX Labs sees expanding its remittances network as a primary objective in its growth strategy. By minimizing unnecessary costs and improving access to more secure funds, the company aims to stimulate economic growth, boost global commerce, enhance international remittances, and reduce inequality.
Stablecoins have emerged as a key tool for facilitating remittances due to their ability to settle transactions almost instantly, provide lower fees, and operate 24/7 on the blockchain. U.S. dollar-backed stablecoins play a crucial role in bridging 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,” emphasized CFX Labs in their 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.”
