Xanpool Raises $27M for Decentralized Payment Network

XanPool Secures $27 Million in Series A Funding

XanPool, a provider of payment infrastructure designed to expedite both cryptocurrency and traditional currency settlements, has announced the successful completion of a $27 million Series A funding round. Valar Ventures spearheaded the investment.

The funding round saw contributions from CMT Digital, Taavet Hinrikus – founder and chairman of Wise – and existing investors Gumi Cryptos and Antler. This brings the total capital raised by XanPool since its inception in 2019 to over $32 million.

Expansion Plans and User Growth

Jeffrey Liu, founder and CEO of XanPool, stated to TechCrunch that the Series A funds will be strategically allocated to strengthen the company’s foothold throughout the APAC region. Currently operating in 12 countries, XanPool aims to expand its user base significantly.

The company’s objective is to grow from its current 500,000 users to a substantial 10 million by the close of 2022. XanPool caters to both individual consumers and businesses seeking alternatives to conventional payment processing systems.

Decentralized Network and Liquidity

Headquartered in Hong Kong, XanPool’s technology facilitates a non-custodial crypto-to-crypto (C2C) network. This network is comprised of diverse liquidity providers, including cryptocurrency funds, money service operators, and businesses with surplus capital.

These providers maintain control of their funds within their crypto wallets, e-wallets, or bank accounts. Liu clarified, “XanPool does not handle these funds directly; we provide the software that automates the buying and selling processes, allowing providers to earn fees.”

Liquidity providers can earn fees of up to 2% monthly by contributing their capital to settle cross-currency and cryptocurrency transactions. XanPool reports that its C2C network currently boasts over $200 million in liquidity.

Reduced Risk and Enhanced Efficiency

The peer-to-peer architecture employed by XanPool minimizes counterparty risks. C2C transactions bypass intermediaries, ensuring completion without credit delays or late settlements.

Currently, over 400 companies integrate XanPool into their applications, offering their customers access to its services. XanPool independently conducts Know Your Customer (KYC) verification on all users.

Key Integrations and Partnerships

Notable integrations include South Korea’s financial “super app” Toss, Vietnamese fintech ViettelPay, Singapore’s PayNow, Indonesian e-wallet GoPay, Australia’s PayID, and the Hong Kong Monetary Authority’s Faster Payment Service.

hong kong-based fintech xanpool raises $27m for its decentralized payment network

User Experience and Future Outlook

XanPool distinguishes itself through a streamlined user experience. Users simply provide their cryptocurrency wallet address, transfer fiat currency to local peers within the C2C network, and receive cryptocurrency directly into their wallets.

This contrasts with traditional custodial platforms, which typically require users to deposit fiat currency and await approval before initiating fiat-crypto exchanges and subsequent withdrawals.

XanPool intends to continue providing its infrastructure to exchanges, wallets, and decentralized applications, rather than launching a proprietary application. The company envisions becoming a network akin to SWIFT, facilitating settlements without holding liquidity, but with compatibility for cryptocurrency, fast payment systems, and e-wallets.