FAQs

• USDX is a permissionless yield-bearing stablecoin for institutional cash management and yield. It is also the first SEC-regulated, yield-bearing stablecoin domiciled in the United States.

• No txn fees
• Seamless API
• Permissionless
• Zero counterparty risk
• Daily yield distributions
• Transparent real-time NAV
• Fiat onramps for 200+ countries
• Choose from over 8 payment methods
• SEC-regulated, United States domiciled
• Backed 1:1 by US government securities

MMF

• Boosts AUM + fee income
• Reduces cash flow volatility
• Increases daily/weekly assets
• Allows for greater counterparty diversification

Payment Providers

• Reduce prefunding from eight days to four
• Reduce FX fees by 20 to 30 bps
• Focus on corporate strategy over day-to-day operations
• Improved access, reduced cost, faster speed, certainty

Investors

• Daily yield on idle cash
• Low minimums
• Instant + certain settlement with 24/7 minting and redemption
• Yield-bearing collateral

Neobanks

• Yield on idle cash balances
• Low minimum investment
• Instant mint and redemption 24/7/365
• Frictionless collateral mobility

• These benefits arise because idle Visa cash inflows via USDX provide more capital for the fund to invest, improving liquidity and stability. This allows for better risk management, the ability to meet redemptions efficiently, and opportunities to pursue higher yields within established risk limits.

Risk Controls

• Customer-Set Order Size Limits
• Price Protections
• Duplicate Order Check
• Messaging Throttles
• Net Exposure Pre-Trade Limits
• Self-Match Prevention
• Cancel on Disconnect
• “Cancel All” Messaging

Intra-company payments

• Optimize and mobilize your liquidity among connected entities by moving funds domestically or cross-border 24/7/365, including on holidays.

Inter-company payments

• Speed up commercial settlement and align treasury processes to the real-time nature of the industry by moving funds domestically or cross-border any day and time of the week including on holidays.

Merchant acquirers and beneficiaries

• Pay acquirers 24/7, and settle funds with certainty on-demand, multiple times a day and minimize need for prefunding and credit lines.

Unlock idle working capital and liquidity

• Efficiently leverage your existing liquidity by automatically moving funds cross-border in a “follow the sun” model to draw on liquidity as needed.

USD offshore Clearing for financial institutions

• Instantaneously settle and clear USD minimizing the need to prefund or use of credit lines on nostro accounts for financial institutions at XFT.

Event driven payments

• Automated real time treasury through the use of Programmable Payments using an intuitive ‘if-this-then-that’ web interface.

• Rebasing, daily.

• A closed-end interval fund structure further allows USDX to maintain its $1 peg through controlled redemptions and issuance:

How it works

• When price < $1: Fund buys USDX from market
• When price > $1: Fund issues new USDX
• Scheduled redemption windows prevent runs on the fund
• This creates a stable mechanism for keeping USDX at $1

Regulatory Benefits

• 1940 Act registered with SEC
• Compliant with new dealer rules
• Authorized operation in USA

Redemption, tbd

• Open and programmable
• Globally accessible
• Available 24/7/365
• Instant settlement at near-zero cost

Other

• Internet mobility + distribution
• Transparent collateral ownership
• Micropayments + granular divisibility
• Instant settlement at near-zero cost
• No prefunding
• No chargeback risk
• No credit/debit card or bank account needed

• Money Market Funds (MMFs) become more stable if investors can use their MMF shares directly as collateral, instead of selling them for cash. This reduces pressure on MMFs during market stress.

• Traditional: Investor sells MMF shares to get cash for margin call, causing fund outflows.
• Tokenized: Investor uses MMF shares/tokens directly as collateral, avoiding sale and fund outflows.

Tokenized Money Market Fund:

• 1. Investor buys tokenized MMF shares
• 2. Shares held digitally in investor's wallet
• 3. Investor can use tokens as collateral without selling
• 4. Yield accrues to tokens (via price increase or rebasing)
• 5. Investor sells or redeems tokens when needed

Traditional Money Market Fund:

• 1. Investor purchases MMF shares
• 2. Shares held in brokerage account
• 3. To use as collateral, investor must sell shares for cash
• 4. Yield typically distributed or reinvested
• 5. Investor redeems shares for cash when needed

ETFs

• Economies of scale, lower transaction costs
• Capital risk reduction via diversification
• Reduced dealing costs
• Transparency
• Tax efficiency

Money Market Funds

• Improved cash utilization, increased yield, liquidity

• Reduction in tracking error, slippage

Closed-End Funds

• Stable Pricing: Aligns closed-end fund market price with NAV.
• Investor Confidence: Guarantees NAV exits, attracting capital.

• 1. USDX increases the number of tokens daily to reflect yield.
• 2. This allows for more precise yield distribution, as it can add fractional tokens.
• 3. wUSDX, on the other hand, increases in price, which may lead to slight rounding differences.

• Opportunity to Buy at a Discount
• Efficient Portfolio Management
• Ability to Control Market Price and Timing
• Integration With Brokerage Account
• Leverage Potential
• Clear Commissions
• Lower Expense Ratios
• No Minimums

• No fees. USDX Rewards are accrued daily on a “net” basis. Real time APY can be found on our website.

Fee Events

• Subscription
• Redemption
• Management
• Transaction
• Deposits
• FX conversion

• Rebasing, daily. System matches the stETH / wstETH model which is a simple and battle-tested model.

Examples

• Rebasing
• Price accrual

• Right to redeem their tokens subject to the terms of the offering memorandum
• Right to receive regular performance reports
• Access to portfolio transparency

• XFT unfortunately cannot provide legal, financial, or tax advice. Our users and investors should consult their tax advisors for any tax considerations. Tax events:

Yield / dividends

• 1. Direct distribution of stablecoin to the holder’s wallet.
• 2. Value accrual to a wrapped vault token, wUSDX, reified upon unwrapping.

Purchase & Redemption

• The USDX token issuance and redemption price is determined by the underlying FOBXX price on the stock market. This price is typically very stable at approximately $1 USD per share with minor fluctuations loosely based on dividend timing. We anticipate that holders of USDX will primarily see dividend-based tax implications.

• Asset eligibility criteria is publicly available on our Investment Mandate: USDX Reserves - Investment Mandate

• No concentration limitations.

Segment	Problem
B2B Payments	Difficult to track High fees Slow Lack transparency
Stablecoins	No yield distribution Lack transparency U.S. regulatory compliance Depegging, USDC reliance
Money Market Funds	Collateral immobility Redemption pressure during market stress Costly and problematic settlement
Cash Management	Idle cash losing value due to inflation High subscription and redemption fees

Type	Example	Use Case
Neobanks	Brex	Cross-border payments
Corporate Treasuries	Apple	Yield-bearing collateral
Insurance	Prudential	Managing float and reserves with low-risk, yield-bearing collateral
Fintech	Robinhood	Yield on idle cash balances
MMF Managers	FOBXX	Inflows, counterparty diversification, liquidity risk reduction

Customer	Value Proposition
MMFs	Boosts AUM + fee income Reduces cash flow volatility Increases daily/weekly liquid assets Allows for greater counterparty diversification
Investors	Daily yield on idle cash Low minimums Instant settlement + 24/7 minting and redemption Yielding-bearing collateral
Payment Providers	Reduce prefunding from eight days to four Reduce FX fees by 20 to 30 bps Focus on corporate strategy vs. operations Improved access, reduced cost, faster speed, certainty

USDX

• XFT retains a small fraction (20%) of the corresponding yield, with the rest distributed to USDX token holders through rebasing. Success is measured via the following KPIs:

• 1. USDX TVL
• 2. USDX held on EOAs (as proxy for missionary holders
• 3. USDX held in DeFi protocols on Arbitrum, broken by usage (Lending, Perp, DEX)
• 4. Number of USDX holders
• 5. Volume transacted with USDX

• Margins expand with TVL proportionally.

X Ledger

• XFT makes money by capturing the difference (spread) between the buying (bid) and selling (ask) prices of tokenized assets on our platform.
• Bid/ask spread
• Tokenization
• Redemption fee
• Arbitrage
• Dividend, interest, coupon