Foreign exchange startup XFX raises $17 million to help businesses transition between cash and stablecoins

(SeaPRwire) –   Swapping U.S. dollars for Mexican pesos might appear straightforward. However, when dealing with large volumes and fast transaction speeds, things can become complex—particularly for businesses that trade in dollar-pegged digital tokens called stablecoins. Miami-based startup XFX, which aims to streamline foreign exchange processes for both fiat currencies and stablecoins, revealed on Thursday that it has secured $17 million in a Series A funding round. 

Castle Island Ventures, a crypto investment firm that has established a specialty in stablecoin-focused investments, led the funding round. Haun Ventures and Coinbase Ventures—both of which participated in XFX’s $9 million seed round—also joined this latest round. XFX cofounder and CEO Santiago Alvarado chose not to disclose the valuation at which the startup raised this new capital. 

“They’re developing foreign exchange (FX) and payment infrastructure that keeps pace with the speed of stablecoins,” Chris Ahn, a partner at Haun Ventures, stated to .

Fiat to stablecoins

Stablecoins are among the most popular segments in fintech right now. Advocates claim these tokens offer advantages like faster cross-border payments and lower transaction costs, to name a few. Over the past year, venture capitalists have invested hundreds of millions into the stablecoin space, supporting high-profile startups such as Zerohash, Rain, and KAST. Just last week, payments giant Mastercard announced it would acquire London-based BVNK for up to $1.8 billion—marking the largest deal to date for a stablecoin-focused company.

Launched in 2025, XFX is looking to capitalize on this growing momentum. The startup’s three cofounders first crossed paths while working at Bitso, a Latin American exchange that allows traders to purchase and sell Bitcoin, Ethereum, and other cryptocurrencies. Alvarado is a former civil engineer who transitioned into fintech entrepreneurship. Jason Losh is a veteran developer who eventually headed a team of 300 at Bitso. Alberto Sánchez Tello, meanwhile, has a background in traditional finance, having worked at firms like Deutsche Bank, UBS, and BlackRock.

While at Bitso, the three founders became frustrated by the challenges of converting stablecoins into Latin American fiat currencies like the Mexican peso, according to XFX CEO Alvarado. Crypto transactions are completed in seconds, but bank transfers can take several days. This led the trio to join forces and launch a company focused on making foreign exchange faster and more efficient. XFX has developed what Alvarado refers to as an “engine” to simplify the matching of currency buyers and sellers, along with other improvements. “Our goal is to figure out how to handle the highest possible transaction volume using the least amount of capital,” Alvarado explained. “That’s exactly what we’re building.”

Besides enabling customers to swap between different stablecoins, XFX also allows exchanges between three fiat currencies: the U.S. dollar, Mexican peso, and Colombian peso. Rather than prioritizing wide currency coverage initially, the startup plans to build deep liquidity in a select group of currencies before expanding further. Put simply, XFX wants its customers to be able to trade between two currencies without a single transaction causing a notable impact on exchange rates.

XFX’s current client base includes financial institutions, money transfer services, and crypto exchanges, Alvarado noted, though he declined to name specific partners. Using the newly acquired funds, the startup intends to hire additional “quants” (mathematically skilled traders) and strengthen its partnerships with trading desks and banks.