The investment aims to facilitate USDT-based cross-border payments in emerging markets and innovate regulatory technology.
Tether, the issuer of USDT, the world’s largest stablecoin, has invested $18 million in blockchain-focused financial institution firm XREX. The primary objective of the collaboration is to drive crypto innovation and stablecoin adoption.
According to Tether’s official announcement, the collaboration aims to facilitate USDT-based cross-border payments in emerging markets and innovate regulatory technology.
“Our collaboration with XREX will spearhead several ground-breaking initiatives, including the launch of a unique new unitized stablecoin by the Unitas Foundation and the facilitation of USDT-based cross-border payments, setting a new standard for financial accessibility and efficiency in the region,” said Paolo Ardonio, CEO of Tether.
Launch of XAU1 Stablecoin
In a collaborative effort aimed at empowering users with a stable digital asset, XREX has joined forces with the Unitas Foundation to launch XAU1, an innovative stablecoin pegged to the USD that boasts over-reservation with Tether Gold (XAUt). XAU1 offers customers a reliable alternative and a hedge against inflationary pressures.
The advancement promises to provide businesses with “increased efficiency and potentially reduced costs” when conducting cross-border transactions.
“Tether’s strategic investment in XREX Group signifies our unwavering commitment to fostering financial inclusion in the emerging markets,” Ardoino said.
The announcement noted that the recent investment reflects Tether’s vision of building a robust infrastructure that transcends the boundaries of the crypto markets, as demonstrated by diversified investments across various industry sectors.
Tether and XREX
Wayne Huang, XREX Group CEO, noted that Tether and XREX have effectively partnered with law enforcement agencies to identify, apprehend, and prosecute criminals. The Group CEO acknowledged that with Tether’s strong support and investment, it is expanding its success into a RegTech product line that further refines XREX Group as a responsible financial institution.
Furthermore, XREX features notable investors such as the Taiwanese Government National Development Fund, CDIB Capital Group (TWSE: 2883), SBI Holdings (TYO: 8473), E.Sun Financial Holding (TWSE: 2884), ThreeD Capital (CSE: IDK), AppWorks, BlackMarble, and New Economy Ventures.
Meanwhile, XREX Singapore has recently obtained the Major Payment Institution license from the Monetary Authority of Singapore. XREX has been operating with Registered VASP status under the Taiwan Financial Supervisory Commission.
