Logistics Company DX Xpress Moves Programmable U.S. Dollars to Mexico in Seconds
Logistics company DX Xpress used tokenized U.S. dollars to make cross-border payments between Mexico and the United States within seconds and for pennies in cost, working with Custodia Bank and Vantage Bank to introduce programmable U.S. dollar payments, Avits, to global supply chains. For the first time, parties routed tokenized U.S. dollars across borders and through the U.S. banking system using a permissionless blockchain network.
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“At DX Xpress, we are always in search for technology to accelerate our operations,” said Antonio Bazán, President and CEO of DX Xpress. “We see the capability to offer integrated, programmable U.S. dollar payments through our platform to speed up cash conversion cycles allowing for payments to be initiated via a smart contract at delivery and ultimately paying drivers for a completed route within the hour.”
Jeff Sinnott, President and CEO of Vantage Bank said, “Vantage works with our customers to plan for their technology-driven banking needs, and in DX Xpress’s case that means helping them recruit the best drivers by offering faster, easier methods of paying drivers based on location-tracking technology. We look forward to deepening our business and foreign exchange customer relationships by offering them faster, cheaper and programmable payments.”
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“We’re bringing corporate treasurers the global network effects of permissionless networks by delivering them in a format usable for audited, compliant businesses,” said Caitlin Long, CEO of Custodia Bank. “Our initial Avit launch last month was domestic only, but these transactions were cross-border and added a suite of legal rights and consumer protections not available with stablecoins issued by non-banks.”
Both banks again complied with all applicable U.S. bank regulatory requirements, including BSA/AML/OFAC, which necessitated designing documentation, policies and procedures that differ from those of current stablecoin issuers. Both banks again worked closely with their respective bank regulators to ensure the success of this first-of-its-kind cross-border use of permissionless tokens within the U.S. banking system.
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The transactions deployed Custodia’s patent, U.S. patent 11392906 (issued July 2022), for the tokenization of U.S. dollar bank deposits on smart-contract type permissionless blockchains.
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Source – prnewswire
