Following the successful launch of Frictionless Institutional Deposit Tokens on Avalanche before Christmas, the Frictionless team has launched and executed its first-ever tokenized FX Swap enabling the payment and settlement of investments in eight global currencies, offering investors worldwide the chance to access premier tokenized funds in their preferred currency.
The FX Swap contracts in the Frictionless protocol provide an instant/atomic swap of a currency pair at a quoted spot or forward rate.
Frictionless FX Swaps remove the complexity of investing in multi-currency, whilst providing ultimate flexibility and transparency of FX rates and settlement.
The Frictionless FX Swaps contracts:
✅ Enable FX Swaps — on any Frictionless Institutional Deposit Tokens as a currency pair.
✅ Execute FX instantly — FX Swaps are executed instantly, in single atomic transactions on Avalanche, ensuring Investors have transparency and immutable proof of settlement for their FX transactions.
✅ Support Spot & Forward FX — Investors and Managers receive the best FX spot and forward rates in the market from our FX partners, AlphaFX.
✅ Offer a highly efficient alternative to currency sleeves — Managers can manage subscriptions, capital calls and cash distributions in multiple currencies for their funds, without the overhead and cost of establishing multiple currency sleeves over their funds.
✅ Unlock New Revenue Streams for Managers — Managers can unlock FX fee-based revenue streams, automatically collecting fees once captured by the FX desks and banks of Investors.
First Live FX Swap on Avalanche C-Chain
On Dec 27th, the Frictionless Markets team conducted the first live FX Swap.
- USD was sold for 5,000 EUR.
- The rate used was a spot rate provided to the Frictionless Markets team by our FX partner AlphaFX.
Live FX Swap — fsUSD for fsEUR (spot rate from Alpha FX)
In the block explorer, you can see the collection of fees, burn of fsUSD and mint of fsEUR. The swap and fee collection ran as a single atomic transaction and cost 0.80 USD to execute on the Avalanche C-Chain.
Checkout the live FX Swap on the Avalanche C-Chain: 👇
Learn more about Frictionless FX Swaps at 👇
Frictionless Institutional Deposit Tokens
The Frictionless protocol supports the payment and settlement of investments in eight global currencies, ensuring Investors globally have access to the best-tokenized funds in the currency of their choice.
Delivered on Citibank cash custodian and AlphaFX spot and forward services, our Institutional Deposit Tokens are a perfect solution for Managers and GPs seeking a highly optimised, transparent and cost-effective solution for raising capital, managing cash-ops, cash waterfalls and distributions within their funds.
Learn more about Frictionless Institutional Deposit Tokens 👇
https://docs.frictionless.markets/developer/smart-contracts/deployments/institutional-deposit-tokens
https://docs.frictionless.markets/developer/protocol-overview/how-it-works#2.-tokenization
Frictionless Protocol
Our protocol is built on the ERC-3643 specification for institutionally compliant tokenized securities and atomic settlement. The audit of the protocol was conducted by industry experts Hacken.io and scored 10/10, assuring our institutional partners and clients of our commitment to the highest security standards.
Follow us at Frictionless Markets for more updates.
