Forward the Original Title ‘Dragonfly’s Bet? Understanding Codex: A Stablecoin Payment Platform for Enterprises | CryptoSeed’

Codex aims to create a native stablecoin cross-border payment infrastructure for companies, moving it from merely “usable” to truly “user-friendly.”

On April 4, Codex, a stablecoin company, secured $15.8 million in seed funding, led by renowned investment firm Dragonfly, with additional investments from Coinbase Ventures, Wintermute, and Selini Capital.

Interestingly, Codex’s official X account only posted its first content on the day the funding was announced (April 4), followed by news of the substantial funding, adding an air of mystery.

From “Usable” to “User-Friendly”: The Future of Stablecoins

The stablecoin market has seen rapid growth in recent years. In 2019, global circulation was about $4 billion, and it has now reached nearly $235 billion, growing almost 60 times. However, the primary users remain individual consumers and crypto traders, with few businesses using stablecoins for cross-border operations.

Codex aims to change this. Their goal is not just to make stablecoins “usable” for businesses but to make them the default method for daily cross-border payments, fund management, and transactions, as natural as today’s bank transfers or SWIFT payments. To achieve this, Codex is taking on the challenge of completely redesigning the stablecoin infrastructure from the foundational blockchain to APIs, foreign exchange systems, and account structures, all centered around business needs.

While stablecoins appear to offer functionalities like transfers, currency exchange, and wallet integration, making them “usable,” businesses still face numerous hurdles. For instance, small and medium-sized enterprises in Southeast Asia looking to use stablecoins for receiving dollars and paying suppliers confront issues like poor cross-chain compatibility, unpredictable fund arrival times, and a lack of transparent exchange rate mechanisms. They often cannot integrate with enterprise financial systems, relying on chat groups and manual processes for reconciliation, which is inefficient and risky.

Businesses are interested in stablecoins, but the current tools do not meet their needs. Ironically, businesses are the ones who need stablecoins the most. Especially in emerging markets, many companies face high inflation, currency devaluation, and costly cross-border payments. Even small efficiency gains, like faster fund arrival or reduced exchange costs, can significantly impact cash flow.

Codex addresses these real challenges, aiming to transition stablecoins from “usable” to “user-friendly” and ultimately integrate them into corporate financial infrastructure.

What Issues Does Codex Address?

Codex offers not just a “tool” but a comprehensive stablecoin infrastructure. Their approach is straightforward: turn the four most common business activities—receiving payments, making payments, exchanging currencies, and managing accounts—into a single interface.

To achieve this, Codex developed Codex Chain, a blockchain specifically for stablecoin transactions. It focuses not on being the “most open” or “most feature-rich,” but on optimizing the three things businesses care most about: security, predictability, and processing efficiency. In real-world scenarios, stability and reliability are more crucial than “innovation.”

Additionally, Codex provides a full suite of easy-to-integrate APIs, allowing engineering teams to incorporate them into existing systems with minimal coding, enabling automated stablecoin transfers, settlements, and reconciliations, reducing technical barriers and speeding up implementation. Key features include:

• Convert fiat currency into stable currency (on-ramp), and the funds go directly to the wallet
• Transfer stablecoins back to fiat currency (off-ramp) and transfer funds to bank accounts through local partners
• It’s okay not to use a stable currency, just exchange and pay from fiat currency to fiat currency.
• Provide virtual accounts with names, such as local IBAN, account numbers, etc., so that customers can send money to you, just like a local bank account

These functions resemble traditional banking services. However, Codex reconstructs them on the stablecoin network—more efficient, faster, and with more flexible compliance paths.

Project Background and Current Status

Codex’s founders have backgrounds in both the crypto industry and traditional businesses. CEO Haonan Li was an early member of the Ethereum ecosystem’s Optimism, focusing on protocol design and governance mechanisms. Another co-founder, Victor Yaw, runs several traditional businesses in Southeast Asia, understanding the challenges of cross-border payments in real-world operations.

According to their official roadmap, Codex has launched institutional-level services in the Philippines and plans to expand to Singapore, the UK, Dubai, and Hong Kong in the second quarter.

(This article only covers early-stage projects and does not constitute investment advice.)

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