XFX Raises $17 Million Series A to Build Stablecoin-Fiat Exchange Infrastructure

Foreign exchange startup XFX announced on March 26, 2026, that it has raised $17 million in a Series A funding round led by Castle Island Ventures, with participation from Haun Ventures and Coinbase Ventures, to build infrastructure that improves the efficiency of exchanging between stablecoins and traditional fiat currencies.

The Miami-headquartered company aims to address the friction between instant crypto transactions and slower bank transfers by creating an “engine” that matches buyers and sellers of currency with greater efficiency, starting with three fiat currencies: the U.S. dollar, the Mexican peso, and the Colombian peso. The startup plans to use the new capital to hire quantitative traders and expand relationships with trading desks and banks.

The round follows a $9 million seed round from the same investors, underscoring continued institutional interest in stablecoin infrastructure amid a broader wave of venture capital flowing into the sector.

Company Background and Technology

Founding Team

XFX was founded in 2025 by three former Bitso employees: CEO Santiago Alvarado, a former civil engineer turned fintech founder; Jason Losh, a longtime developer who led a team of 300 at Bitso; and Alberto Sánchez Tello, who has a traditional finance background with Deutsche Bank, UBS, and BlackRock. The trio grew frustrated with the difficulty of exchanging stablecoins for Latin American fiat currencies at Bitso, where crypto transactions happened in seconds but bank transfers took days.

Technical Approach

XFX has built what Alvarado describes as an “engine” to match buyers and sellers of currency more efficiently, aiming to process the maximum volume with the minimum possible capital. Instead of first focusing on breadth of coverage, the startup aims to create deep liquidity in a subset of currencies before expanding outward, allowing customers to trade between two currencies without one transaction significantly affecting prices.

Market Position and Client Base

Current Offerings

XFX currently supports exchanges between stablecoins and three fiat currencies: the U.S. dollar, the Mexican peso, and the Colombian peso. The company’s clients include financial institutions, money transmitters, and crypto exchanges, though the startup declined to specify with whom they are working.

Competitive Landscape

The stablecoin exchange sector has attracted significant venture capital, with firms such as Zerohash, Rain, and KAST raising funds over the past year. In March 2026, Mastercard agreed to acquire London-based stablecoin infrastructure company BVNK for up to $1.8 billion, the largest deal to date for a stablecoin company. Chris Ahn, a partner at Haun Ventures, described XFX as building “FX and payment infrastructure that matches the speed of stablecoins.”

Frequently Asked Questions

What problem is XFX solving?

XFX addresses the inefficiency in exchanging between stablecoins and traditional fiat currencies. While crypto transactions settle in seconds, bank transfers can take days. The company has built infrastructure to match buyers and sellers of currency more efficiently, reducing transaction costs and settlement times.

How will XFX use the $17 million in funding?

The capital will be used to hire quantitative traders, expand the startup’s relationships with trading desks and banks, and scale its technological infrastructure. The company plans to focus on creating deep liquidity in a subset of currencies before expanding outward.

How does XFX differ from traditional cryptocurrency exchanges?

Unlike general cryptocurrency exchanges that focus on crypto-to-crypto trading, XFX specifically focuses on stablecoin-to-fiat currency pairs and leverages traditional foreign exchange market expertise. The company aims to enable seamless conversion between digital assets and traditional money while minimizing price impact on transactions.