OpenFX Raises $94 Million to Challenge Traditional with a Bet on Stablecoins

Foreign exchange startup OpenFX has raised $94 million in new funding as interest grows in stablecoin based payment systems. The round values the company at approximately $500 million and reflects continued investor focus on financial infrastructure that combines traditional banking processes with digital assets.

The funding was led by a group of venture capital firms, including Accel, Atomico, Lightspeed Faction, M13, Northzone, and Pantera Capital. Their participation highlights a broader trend of capital flowing into companies focused on improving cross border payments through digital means.

Focus on Stablecoin Based Settlement

Founded in 2024 by Prabhakar Reddy, previously associated with FalconX, OpenFX is developing a platform that uses stablecoins to settle foreign exchange transactions. Stablecoins are digital tokens designed to maintain a consistent value, typically linked to fiat currencies such as the US dollar.

The companys system is designed to connect existing banking networks with digital settlement layers. This structure allows transactions to move through stablecoins rather than relying solely on traditional correspondent banking systems, which can involve multiple intermediaries.

The concept behind the platform reportedly originated from Reddys observation of inefficiencies in remittance services, including long waiting times and processing delays in physical transfer locations.

Transaction Speed and Growth Metrics

According to company data, more than 98 percent of transactions processed through its platform are completed within one hour. This contrasts with conventional foreign exchange transfers, which often take between two and five business days depending on the jurisdictions involved.

OpenFX reports that its annualised payment volume has reached over $45 billion, compared with approximately $4 billion a year earlier. This increase has been attributed to demand from financial institutions such as neobanks, fintech firms, and remittance providers.

These figures indicate a broader market demand for faster settlement mechanisms, particularly in regions where existing systems may involve higher costs or longer processing times.

Geographic Expansion Plans

The company has indicated plans to expand its operations into Southeast Asia and Latin America. These regions have seen rising levels of digital payment adoption and increased interest in alternative financial infrastructure.

At present, OpenFX operates in the United States, the United Kingdom, the United Arab Emirates, and India. Expansion into additional markets would place the firm in regions where cross border payment flows are significant and where financial systems vary in efficiency.

Position Within a Competitive Segment

OpenFX operates within a segment of the financial technology industry focused on stablecoin based payments and foreign exchange infrastructure. Its model centres on providing backend services to institutional clients rather than offering direct consumer facing products.

The platform is designed for use by remittance firms, brokerages, global payroll providers, and digital banks. Its role is to facilitate currency conversion and settlement rather than act as a retail payment provider.

In this area, OpenFX shares similarities with companies such as BVNK and Bridge. These firms also provide infrastructure that enables businesses to integrate stablecoins into payment systems, including tools for converting between fiat and digital currencies and managing liquidity.

Strengthening Institutional Capabilities

As part of its operational development, OpenFX has appointed Alex Rowles as Head of Trading and Risk. Rowles previously spent seven years at LMAX Group, where he held senior roles related to trading and liquidity management.

This appointment reflects a focus on strengthening internal capabilities in areas such as risk management and market operations. These functions are particularly relevant as cross border payment systems and digital asset transactions face increasing regulatory oversight.

Broader Industry Context

The funding round comes at a time when stablecoins are being increasingly explored as a tool for improving the speed and cost of international payments. Their use as a settlement layer has attracted attention from both startups and established financial institutions.

However, the sector continues to face regulatory and operational challenges. These include compliance requirements, differing legal frameworks across jurisdictions, and concerns related to financial stability and transparency.

OpenFXs latest funding reflects ongoing developments in this space rather than a definitive shift in the market. As stablecoin based systems continue to evolve, their role within global finance remains subject to regulatory decisions and broader industry adoption.