In 2024, OpenFX, an FX infrastructure company backed by FalconX co-founder Prabhakar Reddy, has raised USD 94 million in Series A funding from Accel, Atomico, Lightspeed Faction, M13, Northzone, and Pantera Capital.

With the new funds, OpenFX plans to expand into Southeast Asian markets and enhance its Latin American payment corridors.

Connecting traditional banking systems with digital-native infrastructure through stablecoins, OpenFX enables near-instant foreign exchange (FX) conversion and cross-border settlement. The platform offers institutional-grade liquidity across over 40 trading pairs, with more than 98% of transactions settling within an hour.

Expansion and Market Demand

OpenFX reports that its annualized payment volume has surged from USD 4 billion to over USD 45 billion, driven by the demand for faster and cheaper alternatives to traditional FX infrastructure.

The platform aims to target markets where real-time domestic payment systems like India’s UPI, Singapore’s PayNow, and Thailand’s PromptPay coexist with ongoing cross-border settlement challenges.

By addressing the structural inefficiency in cross-border settlements, which often take two to five business days and carry FX conversion costs of 50 to 150 basis points, OpenFX aims to unlock more than USD 4 trillion in working capital globally that is currently held in pre-funded nostro accounts for correspondent banking.

In Latin America, the platform will capitalize on its existing presence with trading pairs for Mexican pesos, Brazilian reals, Colombian pesos, and Argentine pesos, amid accelerating stablecoin usage for cross-border payments in the region.

According to Prabhakar Reddy, OpenFX’s Founder and CEO, institutions should not have to wait multiple business days to move capital across borders. He emphasized that OpenFX is designed to deliver real-time, institutional-grade liquidity that reduces risk and lowers costs.