Deal Overview
Metal, a tokenized financial product settlement network, announced the closure of a seed funding round co-led by Airwallex, a leading cross-border payment and financial platform, and Capital49, a venture capital firm focused on fintech and digital assets. The specific investment amount has not been publicly disclosed. As part of the round, Airwallex joined Metal as its inaugural design partner, taking an active role in shaping the network's architecture and product roadmap. This partnership highlights Airwallex's strategic pivot toward blockchain-based settlement solutions.
Airwallex's Strategic Pivot
Airwallex, valued at over $10 billion since 2025, has traditionally focused on fiat-based cross-border payments for enterprises. The investment in Metal represents a foray into tokenized asset settlement. However, the move comes with an interesting backdrop: Airwallex founder Jack Zhang tweeted in June 2025 that he was skeptical of stablecoins' ability to reduce foreign exchange costs. He stated, 'Investors keep asking me about stablecoins and how they lower FX fees. If you move money from USD to EUR and the recipient still needs to receive EUR in their bank account, I don't see how stablecoins can lower fees. The cost of converting from stablecoin to the payout currency is much higher than the interbank FX market.' He further admitted, 'Crypto is a field I have never understood before. In the past 15 years, I have yet to see any real use case for crypto technology.' Given these public comments, Airwallex's investment in Metal may seem contradictory, but it likely reflects a nuanced view: while stablecoins as a payment rail face challenges, tokenized settlement networks for financial instruments may offer genuine efficiency gains.
Market Potential for Tokenized Settlement
Metal is building a settlement layer specifically for tokenized financial products, including bonds, funds, and derivatives. The platform aims to leverage blockchain technology to achieve instant settlement, lower counterparty risk, and reduce operational costs compared to traditional clearinghouses. The tokenization of real-world assets (RWA) is one of the fastest-growing sectors in crypto, with major institutions like BlackRock and Goldman Sachs piloting tokenized funds. However, the lack of robust settlement infrastructure remains a bottleneck. Metal's approach focuses on atomic settlement directly on-chain, which could complement existing custodians and exchanges. Capital49's participation adds credibility, as the firm has a track record of backing successful fintech startups.
Industry Controversy and Implications
Jack Zhang's earlier criticism of stablecoins highlights a persistent debate in the crypto-fintech space: can blockchain reduce fiat frictions? Many traditional finance veterans argue that stablecoins merely add an extra conversion step without solving the underlying liquidity and compliance issues. However, tokenized settlement networks like Metal operate at a different layer—they focus on the finality and speed of security transactions rather than replacing fiat currencies for retail payments. By investing in Metal, Airwallex is essentially hedging its bets: if tokenized securities gain traction, it will already have a foothold in the settlement infrastructure. The deal also signals that even vocal skeptics are willing to explore crypto-based solutions when the use case is narrowly defined. Whether Metal can deliver on its promises and bridge the gap between TradFi and DeFi remains to be seen, but this seed round is a notable step forward.