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.

Zero expense ratio
Internet mobility
Can be used for yield-bearing collateral, no need to sell
Fractional shares
No capital gains or income taxes
24/7 trading
Real-time NAV for underlying mutual fund assets

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

Mutual Funds

Reduce cash drag 15bps
Reduce tracking error
Collateral for redemptions
Zero equitization
Zero fails
Internet mobility
Index return on idle cash balances
Convert MF to ETF no taxes
Convert ETF to MF no taxes

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.

Managed distributions

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

Backed by:
Build America Bonds
Infrastructure (USDX)
SLGS securities
Municipal bonds via closed-end funds trading at a discount to NAV
Revenue bonds
Conduit bonds

Learn more here

Benefits

Faster
Cheaper
Global
Secure

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

Terms

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.

Flows

open customer onboarding flow first + reload

USDX

Event	Action	Supply	Price	Tax	Notes
Deposit	Mint	Increase	$1.00	None	USD in
Withdraw	Burn	Decrease	$1.00	Principal	USD out
Yield	Rebase	Increase	$1.00	Exempt	Daily interest
Wrap	Burn	Decrease	NAV	In-kind	To USDXW

USDXW

Event	Action	Supply	Price	Tax	Notes
Issue	Mint	Fixed	$10.00	None	Initial sale
Tender	Unwrap	Decrease	NAV	In-kind	Redemption
NAV+/-	--	Fixed	Market	--	Price change

TENDER OFFER

Fund announces tender offer window
USDXW holders can submit shares for redemption
Fund accepts shares up to specified limit
Redeems USDXW for underlying USDX at NAV
In-kind distribution maintains tax efficiency
USDXW supply decreases?

USER

Event	Flow	Notes
Deposit	USD → USDX
Withdraw	USDX → USD
Distribution	Muni → USDX	Rebase
Tender	USDXW → USDX	Unwrap, redeem NAV
Wrap	USDX → USDXW	Create NAV

UNWRAPPING:
Tokenized muni basket redemption
Cash redemption NAV
USDX redemption NAV

WRAPPING:
Create USDXW
Deliever muni basket
Deliever cash at NAV
Wrap USDX at NAV

USDX Custodial Flow of Funds

USDX Flow of Funds

1. Create account via /accounts
2. Initiate KYC via /kyc/generate-link and complete verification
3. Link external account via /external-accounts
4. Fund account (USDC/fiat)
5. Mint USDX via /stablecoin/mint
6. Access and manage wallet via /wallets

Overview

Reward Multiplier

POLICY ENGINE

Participants

Sender
Recipient
Stablecoin issuer
Blockchain network
Wallet providers

Authorization

1. Sender initiates a transfer via their wallet.
2. Transaction is broadcast to the blockchain network.
3. Network verifies sender’s balance and transaction validity.
4. Transaction is approved and added to the blockchain.

Processing

5. Transaction is processed on the blockchain.
6. Smart contracts execute any required conditions.
7. Network nodes confirm the transaction.

Settlement

8. Stablecoin is credited to the recipient’s wallet.
9. Transaction is permanently recorded on the blockchain.

Business

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

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

HEADLINES

FORMULAS

NAV = (Market Value of All Securities Held by Fund + Cash and Equivalent Holdings – Fund Liabilities) ÷ Total Fund Shares Outstanding

Premium/Discount = (Market Price – NAV) ÷ NAV

Financial Instrument Reference Database (FIRD)