We are happy to update you on corporate progress by X8 AG to launch regulated stablecoins out of Switzerland.
Since our last communication in autumn 2021, the market has begun to recognize the importance of regulation in this market segment. Moreso in light of the most recent events connected to UST, the focus has moved globally toward regulated solutions. We invite you to read our project’s statement about this topic in the latest release.
This realisation has come on top of the necessity to reform the payment systems recognised by the regulators across the board, including by policy bodies such as G7, FSB and BIS.
REGULATED BY DESIGN
The stablecoins that X8 intend to launch will be regulated by design. Included will be single currency-based stablecoins (up to 8), allowing for cross-border payments, and a basket stablecoin, managed through a proprietary AI system aimed to fight inflationary pressures. This applies to the onboarding of users and the monitoring of their transactions – through full KYC/AML compliance – but also to the operations of the company (internal processes and governance, domestic and cross-border activities). The onboarding process will create an environment where the users of payment instruments can remain private, but not anonymous.
X8 AG is now a member of a self-regulatory organisation pursuant to the Swiss Anti-Money Laundering Act. In addition, an onboarding process has now been developed. The ongoing process to obtain authorisations to operate stablecoin-based payments is now going hand in hand with the development of the required infrastructure, processes and governance to support operations.
PRODUCT TESTING
Since our recent PR in autumn 2021 the X8 project has added several additional points to the list of achievements, including company re-constitution, governance redefinition, organisation regulations, completed onboarding module and conducted a test version of first live front-to-back / user-to-user wallet based transactions (two currencies). A public corporate communication is planned with focus on practical aspects of the new design and a few use cases.
X8 will use the test product as a basis for scaling and finalising the required processes and infrastructure to allow X8 to begin fully authorised operations.
FUTURE STABLECOIN TRENDS
The conclusions from recent global news are obvious, and indicate that regulation will keep increasing for almost the entire blockchain space. Just as the market went from no regulation over the past 4 years to increasingly stricter controls very quickly, the trend going forward points in the same direction. We hold the view that regulation is needed to support the adoption of cryptofinance, including blockchain-based stablecoins.
Switzerland is the leading jurisdiction in terms of regulation in blockchain. Therefore, Swiss based X8 AG has been adapting to these changes and aims to be ahead of the curve where possible.
SUMMARY
In the news section of our website readers can follow frequently updated developments from the project and from the overall stablecoin market as well. A good part of the competition has focused on quick market entrances, many times at the expense of compliance and even at the expense of the safety of the users. Regulated by design represents a different approach compared to the competition and it plays an important role for any project in terms of being relevant in the market over the long-term.
X8 remains determined to do it the right way. We trust that you will support the team of experts dedicated to making the exemplary X8 solutions become reality. We also invite you to follow our project on our official channel on Telegram to stay up to date with all project news and posts as they become available.
X8 Team
Disclaimer
All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. X8 AG is under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.