On The Brink with Castle Island Santi Alvarado (XFX) on Improving FX for Stablecoins (EP.635)
Jun 19, 2025
Santi Alvarado, CEO and Co-Founder of XFX, shares his journey from civil engineering to fintech innovator, driven by a passion for improving payment processes. He delves into the complexities of the legacy FX market and discusses how XFX enhances liquidity for cross-border payments. Alvarado emphasizes the potential of stablecoins to revolutionize money transfers, offering real-time settlements and reducing inefficiencies. He also highlights key features of XFX's platform designed for institutional clients, focusing on transparency and speed in transactions.
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Santi's Bitcoin Remittance Story
- Santi Alvarado started buying Bitcoin to avoid bank delays and fees when sending money from Chile to Peru.
- He found Bitcoin faster and cheaper, inspiring him to build a cross-border payments business leveraging blockchain.
FX Market Inefficiencies
- The FX market is massive, moving $7.5 trillion daily, yet it's opaque and inefficient.
- High capital costs are tied up in Nostro-Vostro accounts, inflating cross-border payment fees and delays.
Legacy FX Settlement Challenges
- Despite being from the 1970s, FX settlement systems are slow, causing working capital burdens.
- Trading costs vary by settlement delays like weekends, which increase capital costs.