Xago Technologies (Pty) Ltd, a financial technology company in South Africa, has announced the launch of Xago XUS, a stablecoin that supports the US dollar.
The company said the new stablecoin will enable its clients to deposit and payout funds using the US dollar and USD Coin (USDC) through its platform, Xago.
Xago, which announced the launch of the stablecoin on Wednesday in a press statement, said it was the first of many stablecoins it will make available on its platform.
With XUS, clients can now receive funds faster within hours, the fintech company said.
The Chief Executive Officer and Co-founder of Xago, Mark Chirnside, explained that while countries in Africa are the poorest globally, individuals in the continent are still being charged the highest international money transfer fees.
This fee is up to 14.5% of total funds for South Africans, for instance, Chirnside pointed out.
Chirnside added: “Xago is committed to developing innovative, faster-than-ever-before, low-cost transaction and trading capabilities, bringing certainty to our clients at a time when the world is still reeling from the costs of the COVID-19 pandemic.
“We are proud to announce the launch of the XUS stablecoin which enables our clients from all over the world to transact with US dollars.
“The funds will now arrive at their destination in a matter of hours, not days and for far less cost than even the global average of just over 6%.”
Xago’s Mission
Xago says it is seeking to transform the payments industry in Africa by bypassing traditional payment costs and delays.
To achieve this, the fintech firm says it is harnessing the power of mobile, retail network and blockchain technology.
“Banks, eCommerce platforms, retailers, mobile operators, crypto exchanges, commodity companies and international business owners partner with Xago to transfer money into and out of Africa rapidly, securely, compliantly, cost-effectively, and with certainty,” the company said in the statement.
