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YieldFX, a digital finance platform bridging traditional finance with decentralised finance (DeFi), has announced the forthcoming launch of its decentralised foreign currency exchange, FLEX, on the Hedera Network.
The platform aims to democratise access to global foreign currency investments and yield opportunities that have traditionally been restricted to major banks and financial institutions, such as foreign exchange carry trades and high-yield currency deposits. FLEX will introduce tokenised, interest-bearing foreign currency deposits that are tradable in real time, targeting retail investors and small-to-medium-sized businesses (SMBs).
The platform employs a hybrid market-making model that combines onchain automated market maker (AMM) liquidity with off-chain institutional liquidity providers. This approach is designed to deepen liquidity, tighten FX spreads, and ensure optimal pricing and execution for users.
By utilising regulatory compliant tokenised deposits for settlement, FLEX enables on- and off-ramping whilst reducing transaction costs. Depositors can earn additional yield through single-sided liquidity provisioning, without the exposure to impermanent loss typically associated with DeFi protocols.
The launch will introduce the YFX token, which will function as the ecosystem's backbone. YFX is a utility and governance token that will be used to pay transaction and liquidity borrowing fees, maintain margin balances, and reward depositors and liquidity providers.
Rajiv Sohal, Founder of YieldFX
Rajiv Sohal, Founder of YieldFX, said:
Decentralising FX markets is the holy grail of the crypto industry, but most approaches are dogmatic and unable to break into mainstream markets. FLEX, with its novel fluid liquidity model, has the potential to break through and lead the way.
Doug Jordan, Co-Founder of YieldFX
Doug Jordan, Co-Founder of YieldFX, added:
We've seen how the world's largest banks benefit from FX spreads and carry trades, while retail investors and small businesses are shut out. YieldFX changes that by giving individuals and institutions a simple, secure way to access high-yield deposits and low-cost FX trading. This launch is about leveling the playing field.
Built on Hedera, an enterprise-grade distributed ledger with low latency and low-cost fees, FLEX is designed to support the high transaction volumes typical of FX markets. FLEX will also integrate with ecosystem projects including HashPack and SaucerSwap.
Gregg Bell, Chief Business Officer at HBAR Inc.
Gregg Bell, Chief Business Officer at HBAR Inc., a subsidiary of the Hedera Foundation, commented:
The launch of the FLEX exchange represents a pragmatic application of blockchain technology to address real market inefficiencies in foreign exchange. Hedera's infrastructure is purpose-built to support these regulated, scalable use cases and we look forward to seeing YieldFX bring accessible currency yields to a global audience.
The initial pilot launch will focus on the U.S.–India corridor, targeting the $165 billion held by the Indian diaspora in low-yield INR deposits, as well as foreign investments from India under the Liberalised Remittance Scheme (LRS). Broader expansion to additional currencies and markets will follow.
For more information, visit www.yieldfx.co or access the demo app at me.yieldfx.co.
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