CrossFi: How to Build Infrastructure to Bridge the Crypto World and Traditional Finance

Guest: Aleksandr Mamasidikov, CEO & Founder of Cross Finance

Interview & Compilation: bayemon.eth, ChainCatcher

1. ChainCatcher: Please briefly review the original intention of founding CrossFi, the process of project development, and the current development progress.

CrossFi: The main idea of CrossFi is to bridge the gap between traditional finance and cryptocurrency by creating an infrastructure platform. Currently, traditional finance and the cryptocurrency sector operate independently, but integrating them could enhance operational efficiency. When discussing the widespread application of cryptocurrency, many users initially wonder if they should abandon the familiar and convenient traditional banking applications. This perspective is fundamentally flawed—there is no need to give up convenient banking; instead, we should focus on enhancing banking services with cryptocurrency. Cryptocurrency is the future of online banking, especially in terms of speed and cost-effectiveness for cross-border transfers (particularly small transfers). Meanwhile, the convenience of using bank cards for in-store payments remains unchanged. Therefore, users should be able to use both cryptocurrency and bank cards within a single application.

Future banking applications will be multifunctional, seamlessly integrating fiat services with various cryptocurrency-related features. We strive to create such an application through the CrossFi app, characterized by a user-friendly interface that everyone can use. Complementing this interface are numerous opportunities that were previously unavailable in traditional finance, including staking, rapid cross-border transfers, and a comprehensive set of business functionalities encompassing analytics and cryptocurrency payment integration.

2. ChainCatcher: What is the current team size and background of CrossFi?

CrossFi: Currently, the CrossFi team consists of about 100 people. It's challenging to specify the exact size of the team as we are preparing to open offices around the world, particularly in Dubai, Hanoi, and Ho Chi Minh City. Our team has extensive experience in launching and developing fintech projects and payment systems, not just those related to cryptocurrency. Therefore, we see the bottlenecks where cryptocurrency can help traditional finance and accelerate the adoption of cryptocurrency in traditional finance. For example, Fyodor Bogorodsky was involved in creating the first ATM and POS terminal network and developed a processing platform for issuing cards for VISA and Mastercard, as well as participating in the issuance of Venezuela's El Petro stablecoin.

3. ChainCatcher: Please briefly introduce CrossFi's role in the current Web3 payment ecosystem.

CrossFi: In short, CrossFi is a bridge between the traditional financial world and cryptocurrency. It encompasses the best mechanisms of both to meet the current needs of global customers. We pay special attention to unbanked individuals who are unable to access traditional financial systems due to certain restrictions, such as low credit levels, high banking fees, or living in remote areas. Web3 technology can provide them with financial services.

4. ChainCatcher: CrossFi can achieve cross-chain payments across different blockchain networks, but security incidents involving cross-chain bridges like Multichain earlier this year have made the community more aware of the safety of cross-chain bridging operations. How does CrossFi ensure the security of cross-chain operations while maintaining a certain level of flexibility?

CrossFi: CrossFi handles users' digital assets in a non-custodial manner. Non-custodial means that customers' coins remain in their wallets, and users do not need to send coins to any third-party address. Users simply connect their MetaMask wallet to the CrossFi app's smart contract to interact with the CrossFi app. When users wish to shop using tokens stored in their MetaMask wallet through the CrossFi app, the app's banking processing engine provides the necessary fiat amount for the transaction. It then calculates the required XFI amount based on the current exchange rate and passes this information to the smart contract, which deducts the funds from the user's linked MetaMask wallet. The entire process is seamless and nearly instantaneous, simplifying and enhancing the user experience of purchasing with cryptocurrency. As you can see, users have no time constraints when using balances in third-party wallets, and when paying with cryptocurrency, users transfer digital assets directly from their wallets.

5. ChainCatcher: The documentation mentions the use of two tokens (XFI and MPX). Can you introduce its tokenomics model? The document also states that the reason for using two tokens is to facilitate a more efficient liquidity cycle. Please briefly explain how the interaction between the two tokens optimizes CrossFi's liquidity.

CrossFi: Yes, CrossFi uses a dual-token model. XFI is a payment token used for all services running on the CrossFi blockchain and is part of the CrossFi ecosystem. It is the key to unlocking all possibilities within the ecosystem. XFI can be traded on cryptocurrency exchanges like Huobi and MEXC. The issuance period for XFI is expected to be 20 years. MPX is a governance token and a unit of computational power, which is needed to generate new XFI through market observation. The face value of MPX is $0.02. A portion of the liquidity obtained from selling MPX will be transferred to the XFI liquidity pool.

6. ChainCatcher: In addition to cross-chain bridging, CrossFi is also involved in the exchange of fiat currencies, stablecoins, and other cryptocurrencies. How do you ensure the security and transparency of the acceptance between cryptocurrencies and fiat currencies?

CrossFi: The entire cross-chain bridging process is executed in a non-custodial manner through smart contracts, using the processing engine developed by our team for the CrossFi app. Customers' funds remain in their wallets and do not need to be sent anywhere. Interaction occurs through MetaMask, smart contracts, and the processing engine.

7. ChainCatcher: Recently, the US SEC has frequently taken action against leading CEXs like Binance, and the regulatory storm seems never-ending for the entire Crypto World. How will you respond to global regulatory pressures?

CrossFi: The regulatory environment is undergoing significant changes, which everyone in the industry can see. However, once progress begins, it cannot be stopped. Therefore, regulatory fluctuations are likely to occur in the coming years. However, cryptocurrency is destined to integrate into our lives in one way or another. It is crucial to be well-prepared for this evolution, as being well-prepared can provide a competitive advantage, especially in business and financial enterprises. Cryptocurrency is the future of banking, and only time will reveal the exact contours of the upcoming regulatory framework.

8. ChainCatcher: In a previous interview article, it was mentioned that nearly 60% of adults in Vietnam do not have their own bank accounts, yet the cryptocurrency adoption rate in Vietnam has already reached the highest in the world. What competitive advantages do you think Web3-oriented payment solutions like CrossFi have over traditional financial payments? What dimensions of user experience can they optimize?

CrossFi: Cryptocurrency enables fast and low-cost transactions to be conducted in a secure and transparent manner, which is particularly advantageous for cross-border transfers. Cryptocurrency can lower the barriers to entry into financial services, thus providing financial services to millions of unbanked individuals, and can also create products that allow users to maximize the utility of their digital assets.

9. ChainCatcher: CrossFi was born in the Vietnamese market, seizing the opportunity of rapid early market expansion, with data predicting that the number of users will increase 3-6 times in the coming years. CrossFi's current development relies on the rapidly growing Vietnamese market. Can you briefly explain how CrossFi gives back to the Vietnamese cryptocurrency market and ecosystem?

CrossFi: I do not entirely agree with the statement that CrossFi was born in the Vietnamese market. CrossFi was initially created with the global market in mind, but developing economies particularly need comprehensive financial solutions, which is why CrossFi has received special attention. The rapid growth of CrossFi's user base in Vietnam validates our theory that developing countries need solutions that combine cryptocurrency and traditional finance.

10. ChainCatcher: Does CrossFi have plans for global expansion? If so, can you reveal the specific roadmap and timeline for global market expansion?

CrossFi: CrossFi's original intention is to become a global platform; we have never limited ourselves to one market. We are preparing to establish studios in Dubai, Hanoi, and Ho Chi Minh City, and we are also a title partner of the TOKEN2049 conference in Singapore. Therefore, we are already global.