FAQ
Q: What is XFT? A: XFT is a digital asset manager. We issue stablecoins for global corporations in retail, hospitality, and industrials. These stablecoins power our transaction banking platform, which offers full-stack blockchain solutions to the most complex cash management problems for corporate treasurers. Our mission is to use blockchains to build resilient internet capital markets and accelerated global supply chains.
Q: Why stablecoins? A: Instant zero-fee 24/7/365 global programmable internet payments
Q: Why XFT stablecoins? A: Backed 1:1 w/ tokenized cash, cash equivalents for in-kind redemptions. Native U.S. Treasury Marketable Securities issuance. Deep direct, indirect liquidity corridors. Federal Reserve Discount Window access.
Q: What is the BITNET? A: The BITNET is XFT's all-to-all blockchain trading system home to 20000+ tokenized securities across all asset classes.
Q: Why BITNET? A: Programmatic multi-asset composability. Offline digital payments. Use stocks, bonds, real estate to buy groceries.
BITNET improves:
Operational risk mitigation through standardization and automation
Intraday liquidity
Post-trade FX matching and netting processes
BITNET reduces:
Funding and number of payments required
Inconsistent FX matching and FX netting
Credit consumption
Intraday overdraft costs and correspondent bank charges
Communication required to confirm positions pre-settlement
Q: What is the International Deposits Network? A: The International Deposits Network (IDN) is XFT's RTGS payment system for tokenized commercial bank deposits. It is used to put onchain tokenized products into traditional offchain bank accounts. Send cross-border real-time payments using IDN blockchain deposit accounts.
Q: What is XFT Token Service? A: XFT Token Service generates TANs for legacy and blockchain payment rail interoperability. This means users can send stablecoins to a wallet using, for example, the associated ABA RTN. It is also used for onchain bank account creation.
Q: What is Bitstream? A: Bitstream is the central securities depository arm of The XFT Group.
What is blockchain?
Blockchain is a payment system that is: Secure Instant Global Transparent Immutable Programmable Forward-only timestamped database secured by math. Fedwire or ATM on your phone. All-to-all bond trading system. RTGS money or security transfer system except instead of being behind a Chase Bank or Visa, its on your phone. Public Google Sheet file that is readable, writable, accessible for free to anyone with an internet connection.
What is a crypto wallet?
Bank account except instead of being secured by a 4 digit pin, its secured by a 256 digit pin. Internet version of your physical wallet. Like your Venmo or debit card account.
What is a stablecoin?
A digital dollar or “token” usable anywhere the internet is as means of payment where 1 token = 1 USD. USD on the internet. Physical, fiat paper bills in your pocket, on your phone. Stablecoins are used in the same way as a holder would use USD, whether to send and receive payments, acquire and trade assets, or simply to hold USD to use in the future. Digital p2p transferable money market mutual fund where 1 token = 1 share = 1 USD. Transferable unit of account recorded on a database called a blockchain. Like airline miles, hotel points, casino chips
How are XFT units permissionless?
All XFT units are operate in a very similar way as other fiat-backed stablecoins like USDC or USDP. Primary Users (those who have an account with XFT) can mint and redeem USDX (for example) at $1. Both Primary and Secondary users can freely transfer their units, deposit it into smart contracts, and interact with any protocol that is compatible with the ERC20 standard.
How do I purchase USDXT?
Customers may purchase USDXT with USD via XFT API, web app or distribution partner.
What is a central bank digital currency (CBDC)?
A CBDC is a digital form of central bank money that is widely available to the general public. It is a digital liability of a central bank.
How do yield-bearing XFT products distribute income?
Tokens rebase daily, accruing new tokens regardless of where the yield-bearing unit is held. The mechanism of rebasing modifies the balanceOf via a rewardMultiplier. For more details, refer to the documentation here.
Why blockchain?
Blockchain is a payment system that is: Secure Instant Zero-fee 24/7/365 Global Transparent Immutable By the numbers: Reduced yield spreads by 25 bps (BIS) Enhanced liquidity by 5.3% (HKMA) Cost savings of 35-65% across settlement value chain (Digital Asset) Up to $5 billion in cost savings for equity-post trading (Digital Asset) Reduce investment bank costs by $12 billion a year (Accenture)
What is netting?
A way of consolidating or reconciling multiple payments between two or more parties to create a single amount due to each participant. It simplifies doing business and reduces risk.
Netting refers to the consolidation of multiple financial obligations or payments into a single net amount. By strategically offsetting positive and negative positions, netting reduces the total number and value of payments involved as well as their associated settlement risks.
Example: Party A is due to receive USD 75,000 from Party B. At the same time, Party B is due to receive USD 30,000 from Party A. Instead of Party B paying USD 75,000 to Party A and Party A paying USD 30,000 to Party B in two separate transactions (called gross settlement), the payments can be netted. That way Party A owes nothing, and Party B pays Party A USD 45,000.
Why netting?
• Reduction of credit risk • Reduction of settlement risk • Reduction of liquidity risk • Reduction of systemic risk
What are the types of netting?
• Payment Netting • Novation Netting • Close-Out Netting • Multilateral Netting
Why blockchain for netting?
Lower costs for all parties
Reduce manual data entry and file uploads
Automate and speed processing of matching and netting transactions
Increase security through encryption and tamper-evident distributed ledger technology
Provide transparency and enhance trust with permissioned access to transaction data
Definitions, acronyms, and abbreviations
Payment-versus-payment (PvP)
A settlement mechanism that ensures that the final transfer of a payment in one currency occurs if and only if the final transfer of a payment in another currency or currencies takes place. If more than two currencies are involved in a PvP chain, it is called PvPvP in the context of this study.
Business Identifier Code (BIC) Used for addressing messages, routing business transactions and identifying business parties.
International Bank Account Number (IBAN) Specifies the structure of ISO-compliant national IBAN formats, which facilitate automated cross-border payment transaction processing.
Legal Entity Identifier (LEI) Used to enable the consistent and accurate identification of legal entities which are party to a financial transaction.
ABA routing transit number (ABA RTN) The nine-digit code printed on the bottom of checks to identify the financial institution on which it was drawn.
AML anti-money laundering API application programming interface BIS Bank for International Settlements CFT combating the financing of terrorism CPMI Committee on Payments and Market Infrastructures DID decentralised identifiers DLT distributed ledger technology FX foreign exchange KYC know your customer PFMI Principles for financial market infrastructures PSP payment service provider PoC proof of concept RTGS real-time gross settlement
Sistema de Pagos Electrónicos Interbancarios (SPEI) Society for Worldwide Interbank Financial Telecommunication (SWIFT) International Bank Account Number (IBAN) Business Identifier Code (BIC) Bank Identifier Code (BIC) Market Identifier Code (MIC) Legal Entity Identifier (LEI) CHIPS Universal Identifier (UID) Clearing House Interbank Payments System (CHIPS) Routing Transfer Number (RTN) American Banking Association (ABA) Automated Clearing House (ACH) Single Euro Payments Area (SEPA) North American Clearinghouse Association (NACHA) Originating Depository Financial Institution (ODFI) Receiving Depository Financial Institution (RDFI) Tokenized Account Number (TAN) Bankers Automated Clearing System (BACS) Automated Customer Account Transfer Service (ACATS) Automated Customer Account Transfer Service (ACATS) Depository Trust Company (DTC) Proof of Authorization (PoA) Request for Payment (RfP) Real Time Payments (RTP) The Clearing House (TCH) Credit Union (CH) Home Equity Line of Credit (HELOC) Electronic Funds Transfer (EFT) Real-Time Gross Settlement (RTGS) Financial Instrument Global Identifier (FIGI) Automated Customer Account Transfer Service (ACATS) Depository Trust & Clearing Corporation (DTCC) National Securities Clearing Corporation (NSCC) Financial Industry Regulatory Authority (FINRA) Account Transfer on Notification (ATON) Standard Entry Class (SEC) Peer-to-peer (P2P) Consumer Financial Protection Bureau (CFPB) Plan d’Epargne en Actions (PEA) Delivery vs. Payment (DVP) Receive vs. Payment (RVP) National Best Bid/Offer (NBBO) Volume-weighted average price (VWAP) Exponential Moving Average (EMA) Magnetic ink character recognition (MICR) Building Identification Number (BIN) Borough-Block-Lot (BBL) National Book-Entry System (NBES) Commercial Book-Entry System (CBES) Central Counterparty (CCP) central securities depository (CSD) Fast Automated Securities Transfer Program (FAST) Securities Transfer Agents Medallion Program (STAMP) Hash Time Locked Contract (HTLC) Point Time Locked Contract (PTLC) Multy-Party Hash Time Locked Contract (MPHTLC) payment-versus-payment (PvP) Continuous Net Settlement (CNS) Continuous Linked Settlement (CLS) deferred net settlement (DNS) real-time gross settlement (RTGS) Designated-Time Net Settlement (DTNS) Large-Value Payment Systems (LVPS) Direct Registration System (DRS) Direct Holding System (DHS) Demand Deposit Account (DDA) Controlled Disbursement Account (CDA) Merchant Discount Rate (MDR) Merchant category code (MCC) Accounts payable (AP) Accounts receivable (AR) Point-of-sale (POS) Mail order/telephone order (MOTO) Europay, Mastercard, and Visa (EMV) Automated teller machine (ATM) Personal identification number (PIN) Electronic draft capture (EDC) Third-Party Payment Processor (TPPP) Payment service provider (PSP) Payment Card Industry Data Security Standards (PCI DSS) Personally Identifiable Information (PII) Request for Quote (RFQ) Request for Cross (RFC) Request for Cross (R-Cross) Committed Cross (C-Cross) Better Price or Volume Match (BPVM) Portfolio Trades (PT) Systematic internalisers (SI) Liquidity provider (LP) Multilateral trading facility (MTF) Broker crossing network (BCN) Double volume cap (DVC) Direct Market Access (DMA) Sponsored Access (SA) Smart Order Router (SOR) Straight Through Processing (STP) Small Order Execution System (SOES) National Association of Securities Dealers (NASD) National Best Bid and Offer (NBBO) Ethereum Best Bid and Offer (EBBO) Informal value transfer system (IVTS)
Trade at Settlement (TAS) Trade at Marker (TAM) Basis Trade Index Close (BTIC) Trade at Cash Open (TACO) Inter-Commodity Spreads (ICS) Good Till Cancel (GTC) Good Till Date (GTD) Fill and Kill (FAK) Fill or Kill (FOK) All or None (AON) ELECTRONIC TRADING SYSTEM (ETS) MANUAL TRADING SERVICE (MTS) REQUEST FOR QUOTE TRADING SYSTEM (RFQS) Trade order management system (TOMS) Order Management System (OMS) Execution Management System (EMS) Order and Execution Management System (OEMS) Electronic Communication Networks (ECNs) Crossing Networks (CNs) ALTERNATIVE TRADING SYSTEMS (ATS) SMALL ORDER EXECUTION SYSTEM (SOES) National Association of Securities Dealers Automated Quotations (NASDAQ) Chicago Mercantile Exchange (CME) Chicago Board of Trade (CBOT) New York Mercantile Exchange (NYMEX) New York Commodities Exchange (COMEX) Reuters Trade Notification Service (RTNS) Financial Information eXchange (FIX) Transaction Cost Analysis (TCA) Payment Card Industry Data Security Standard (PCI-DSS) Near-field communication (NFC) Payment for Anonymous Routing (PAR) Tax-Free Savings Account (TFSA) Registered Retirement Income Fund (RRIF) Registered Retirement Savings Plan (RRSP) Adjusted Cost Base (ACB) Optional Cash Purchase (OCP) Direct Share/Stock Purchase Plan (DSPP) Share Purchase Plan (SPP) Pre-Authorized Debit (PAD) Dividend Purchase Plan (DPP) Optional Cash Purchase (OCP) Trade-based money laundering (TBML) Ultimate Beneficial Ownership (UBO) In-person verification (IPV)
LN, ST, AVE, BLVD, RD
FRN FLOATING RATE NOTE FNMA FANNIE MAE FNMDN FANNIE DISCOUNT NOTE FHLMC FREDDIE MAC FREDN FREDDIE MAC DISCOUNT NT FFCB FEDERAL FARM CREDIT BANK FFCBDN FED FARM CRD DISCOUNT NT FHLB FEDERAL HOME LOAN BANK FHLBDN FED HOME LN DISCOUNT NT F FLOAT DN DISCOUNT NOTE NT NOTE WI WHEN ISSUED WIB WHEN ISSUED BOND RI REISSUED OTR ON-THE-RUN FHFA FEDERAL HOUSING FINANCE AGENCY FHFB FEDERAL HOUSING FINANCE BOARD GSE GOVERNMENT SPONSORED ENTERPRISE
Federal Home Loan Bank Federal Home Loan Banks is a banking system which consists of 11 separate regional banks which are private, cooperative, government-sponsored enterprises. The Banks support residential mortgage lending by their member-stockholders such as commercial banks, credit unions, and insurance companies.
Federal Farm Credit Bank Federal Farm Credit Banks Funding Corporation engages in issuing, marketing, and handling the Farm Credit Systems debt securities. It offers discount notes, designated bonds, floating rate bonds, fixed rate bonds, and retail bonds.
Fannie Mae Fannie Mae buys and holds mortgages, and issues and sells guaranteed mortgage-backed securities to facilitate housing ownership for low to middle-income Americans. The Company was chartered by the United States Congress, but went public in 1970.
Freddie Mac Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds to mortgage lenders. Freddie purchases single-family and multi-family residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets.
When-issued When-issued (WI) trading refers to trading of the new security after the announcement but before issuance.
LEGAL ENTITY IDENTIFIER
254900HROIFWPRGM1V77 United States Treasury 254900C5LP6DN9OP9V83 FEDERAL FARM CREDIT BANK 2549001DPIFGXC1TOL40 FEDERAL HOME LOAN BANK S6XOOCT0IEG5ABCC6L87 FREDDIE MAC B1V7KEBTPIMZEU4LTD58 FANNIE MAE G5GSEF7VJP5I7OUK5573 Barclays Bank plc 549300QJJX6CVVUXLE15 RBC Dominion Securities, Inc.
PS
Payment system: a set of instruments, procedures and rules for the transfer of funds between or among participants; the system includes the participants and the entity operating the arrangement.
CSD/SSS
Central securities depository: an entity that provides securities accounts, central safekeeping services and asset services, which may include the administration of corporate actions and redemptions, and plays an important role in helping to ensure the integrity of securities issues (that securities are not accidentally or fraudulently created or destroyed or their details changed).
Securities settlement system: an entity that enables securities to be transferred and settled by book entry according to a set of predetermined multilateral rules. Such systems allow transfers of securities either free of payment or against payment. Typically, a CSD also operates an SSS.
CCP
Central counterparty: an entity that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the performance of open contracts.
TR
Trade repository: an entity that maintains a centralised electronic record (database) of transaction data.
Mil Rates An expression of the daily rate of per-share income earned in a bond or money market fund.
Minimum This refers to the smaller dollar amount an investor may deposit into an account. There are different types of minimums, including a minimum initial investment required to open both retirement and non-retirement accounts, and a minimum subsequent investment once the account has been established.
Last updated