X FINANCIAL TECHNOLOGIES

Infrastructure for onchain capital markets

Our purpose is to utilize blockchain to enable an inclusive resilient, and frictionless global economy.

Stablecoin challenges

No yield
Taxes
Lack transparency
USA regulatory compliance
Depegging, USDC reliance

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

XFT’s Compliant Solution

Permissionless stablecoin
SEC regulated
Daily yield
Tax exempt

Trillion dollar problem

$127T B2B payment volume
$8.5T stablecoin market
$2.7T cash management costs
80% SMB share of B2B spend
$950B revenue opportunity

Scalable fee structure

20% yield share
Gas fee pass-through
No mgmt, performance, txn fees
Margins grow with AUM

Why USDX?

Low minimums
Zero counterparty risk
Programmatically banked
No capital gains or income taxes
No management, performance, transaction 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

HEADLINES

Internet mobility
Low minimums
No slippage
No chargeback risks
Zero counterparty risk
Programmatically banked
Prefunded transactions
No capital gains or income taxes
No management, performance, transaction fees
Instant 24/7/365 bilateral settlement
Quantum resistant cryptography
Daily yield distributions
SEC regulated
Global fiat onramps
Real-time NAV for underlying assets

Tax-exempt in-kind redemption
Yield-bearing collateral
Smart contract collateral
Redemption collateral
Secure payment systems
Tax management
Self-custodied bank account
No management, performance, transaction fees
Outflow reduction
Cash drag reduction
Fractional shares
Cross-border payments
Intra-company payments
Inter-company payments
Event driven payments
Tracking error reduction
Return from low-risk US government securities

Municipal Bonds

High dividends
Tax free
Safe
Rising NAVs

Closed-end funds

Managed distributions
Fixed supply
Compliance
Not required to redeem if outflows

"The one advantage that a closed-end fund or ETF has over an open-end fund is that it cannot be forced to sell stocks because of redemptions. If shareholders in an open-end fund want to redeem more shares than the dividends the fund receives, the fund must sell stock and realize capital gains. In an ETF, shares are redeemed in-kind by institutions, so there is no tax consequence. In a closed-end fund, shareholders cannot have net redemptions; if they want to sell, they must find a buyer on the market."

Total Return (Yield Driven)
Diversification
Professional Management
Leverage Used by Fund
Free Leverage of The Discount
Control: Limit & Stop Orders
Fixed Capitalization: No Redemption Pressures
Capitalize on Market Inefficiencies
Low Active Institutional Ownership / Mostly Retail

Investor gets NAV value vs discount
Tax efficient in-kind transaction
Exits at NAV
Second layer of liquidity for fixed share investment products

USE CASES

Arbitrage
Activist prevention

Prospectus

XFT Municipal Money Market Fund’s investment objective is to seek to provide current income that is exempt from federal personal income taxes while maintaining liquidity and a stable share price of $1. As such it is considered one of the most conservative investment options offered by XFT. Although the fund invests in short-term, high-quality securities, the amount of income that a shareholder may receive will be largely dependent on the current interest rate environment and the availability of eligible municipal securities. Investors in a higher tax bracket who have a short-term savings goal and seek a competitive tax-free yield may wish to consider this option.

The Fund seeks to provide current income that is exempt from federal personal income taxes while maintaining liquidity and a stable share price of $1.

Investment Goal

Maintain $1.00 share price
Tax exemption
Yield

RIC status; avoids US income tax if income and gains are distributed.

OR

Tax exemption via municipal bond portfolio

Frequent flyer miles and reward points

Distribute daily variable dollar amounts to maintain $1 NAV per managed distribution policy.

Methods

Increase distribution if NAV > $1
Distribute income to avoid NAV growth
Return capital to offset premium
Reduce distribution if NAV < $1

The following tables describe the fees and expenses you may pay if you buy, hold, and sell Dollar Shares or DeFi Shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

Shareholder Fees
(Fees paid directly from your investment)


Sales Charge (Load) Imposed on Purchases	None
Purchase Fee	None
Sales Charge (Load) Imposed on Reinvested Dividends	None
Redemption Fee	None
Account Service Fee Per Year (for certain fund account balances below $5,000,000)	$25

Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the value of your investment)


Management Fees	0.00 %
12b-1 Distribution Fee	None
Other Expenses	0.01 %
Total Annual Fund Operating Expenses	0.01 %

Examples

The following examples are intended to help you compare the cost of investing in the Fund’s Dollar Shares or DeFi Shares with the cost of investing in other mutual funds. They illustrate the hypothetical expenses that you would incur over various periods if you were to invest $10,000 in the Fund’s shares. These examples assume that the shares provide a return of 5% each year and that total annual fund operating expenses remain as stated in the preceding table. You would incur these hypothetical expenses whether or not you were to redeem your investment at the end of the given period. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year	3 Years	5 Years	10 Years
Dollar Shares	$17	$55	$96	$217
DeFi Shares	$9	$29	$51	$115

The Fund invests in a variety of high-quality, short-term municipal securities. To be considered high quality, a security must be determined by XFT to present minimal credit risk based in part on a consideration of maturity, portfolio diversification, portfolio liquidity, and credit quality. The Fund invests in securities with effective maturities of 397 days or less, maintains a dollar-weighted average maturity of 60 days or less, and maintains a dollar-weighted average life of 120 days or less.

Principal Risks

The Fund is designed for investors with a low tolerance for risk, but you could still lose money by investing in it. The Fund is subject to the following risks, which could affect the Fund’s performance, and the level of risk may vary based on market conditions:

• Income risk , which is the chance that the Fund’s income will decline because of falling interest rates. Income risk is generally high for short-term bond funds, so investors should expect the Fund’s monthly income to fluctuate accordingly.

• Interest rate risk , which is the chance that bond prices overall will decline because of rising interest rates. Interest rate risk should be low for the Fund because it invests primarily in short-term bonds, whose prices are less sensitive to interest rate changes than are the prices of longer-term bonds.

• Call risk , which is the chance that during periods of falling interest rates, issuers of callable bonds may call (redeem) securities with higher coupon rates or interest rates before their maturity dates. The Fund would then lose any price appreciation above the bond’s call price and would be forced to reinvest the unanticipated proceeds at lower interest rates, resulting in a decline in the Fund’s income. Such redemptions and subsequent reinvestments would also increase the Fund’s portfolio turnover rate. Call risk is generally low for short-term bond funds.

• Extension risk , which is the chance that during periods of rising interest rates, certain debt securities will be paid off substantially more slowly than originally anticipated, and the value of those securities may fall. Extension risk is generally low for short-term bond funds.

• Credit risk , which is the chance that a bond issuer will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. In general, credit risk should be relatively low for the Fund because it invests primarily in bonds that are considered to be of high quality.

• Liquidity risk , which is the chance that the Fund may not be able to sell a security, including restricted securities, in a timely manner at a desired price.

• Manager risk , which is the chance that poor security selection will cause the Fund to underperform relevant benchmarks or other funds with a similar investment objective.

• Tax risk , which is the chance that all or a portion of the tax-exempt income from municipal bonds held by the Fund will be declared taxable, possibly with retroactive effect, because of unfavorable changes in tax laws, adverse interpretations by the Internal Revenue Service or state or local tax authorities, or noncompliant conduct of a bond issuer.

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.

You may purchase or redeem shares online through our website (xft.finance). The minimum investment amount required to open and maintain a Fund account for Investor Shares or DeFi Shares is $3,000 or $50,000, respectively. The minimum investment amount required to add to an existing Fund account is generally $1. Financial intermediaries, institutional clients, and XFT-advised clients should contact XFT for information on special eligibility rules that may apply to them regarding DeFi Shares. If you are investing through an intermediary, please contact that firm directly for more information regarding your eligibility.

The Fund’s distributions may be taxable as ordinary income or capital gain. A majority of the income dividends that you receive from the Fund are expected to be exempt from federal income taxes. However, a portion of the Fund’s distributions may be subject to federal, state, or local income taxes or the federal alternative minimum tax.

The Fund and its investment advisor do not pay financial intermediaries for sales of Fund shares.

Fund Admin & Custodian	BNY Mellon
Fund Manager	Closed-End Fund Advisors
Auditor	Ernst & Young LLP
Transfer Agent	X Financial Technologies
Prime Brokerage	Goldman Sachs, RBC
Fiat <> Stablecoin	Visa

CIK
Series
Class/Contract	Name	Symbol

0000225997	XFT MUNICIPAL BOND FUNDS
S000002892	XFT High-Yield Tax-Exempt Fund
0x81536233C3FfaEa0198D7B5Ce8dEceDf3C520A66	Dollar Tokens	USDX
C000007950	DeFi Shares	USDXW

Fund Name	XFT Short-Term U.S. Government Securities Fund
Ticker	USDX
Description	Permissionless yield-bearing stablecoin
Use Cases	Cash management, yield-bearing collateral, cross-border payments
Underlying	Short duration government securities
Eligibility	Qualified Purchasers
Liquidity	24/7 via USDC, Daily via USD
Issuer Jurisdiction	Delaware, United States
Structure	1940 Act Closed-End Interval Fund
Minimum Mint	$5,000
Minimum Redemption	$5,000
Fee Schedule	Yield share, network gas fee pass-through
Available Networks	Ethereum, Avalanche, X Ledger, Stacks, Lightning Network

Structure
Non-diversified, closed-end management company registered under the 1940 Act

Distribution Policy
Distributes daily variable dollar amounts per managed distribution policy, benchmarked to CEFA's Municipal Bond Select portfolio.

Tax Treatment
The Company intends to elect to be treated as a regulated investment company (RIC); if qualified, the Company will not be subject to US income tax to the extent income and gains are distributed

Delaware Series Trust

CEFA Municipal Bond Select

Maintain stable $1.00 share price
Tax exemption
Yield

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Introduction
Problem Statement
Solution