Decentralized foreign exchange DFX Finance raised $5 million in seed round

DFX Finance, a decentralized foreign exchange startup for stablecoins, announced a $5 million seed round on Tuesday.

Alongside the funding news was the launch of a dedicated governance token, with liquidity mining focus on three stablecoins: CADC, EURS, and XSGD.

DFX intends to build out its team and to pursue scalability initiatives that bring on more stablecoins over the coming year, co-founder of DFX Kevin Zhang told The Block.


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Polychain Capital and True Ventures co-led the funding round. Additional investors include Boost VC, Hex Capital, Lemniscap, CMS Holdings, Castle Island Ventures, FBG Capital, DeFi Alliance, Divergence Ventures, and SRC Capital.

Polychain's footprint in the DEX ecosystem grew with this latest round, having previously invested in the derivative-focused DeriviDEX and privacy DEX Manta Network

The newly launched DFX governance token will allow DFX token holders to suggest proposals and vote on protocol changes, Zhang said. The liquidity mining using CADC, EURS, and XSGD aims to stimulate the adoption of non-USD pegged stablecoins, he contended.

"We are on a mission to build the infrastructure to enable on-chain FX swaps that minimize slippage, optimize capital, and maximize utility. We are creating a new market for non-USD currencies and opening up DeFi applications to a global audience that use these currencies," Zhang said. 

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MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.