Tether Invests $18.75M in XREX Group to Enhance Financial Inclusion and Cross-Border Payments
Tether, the preeminent stablecoin issuer, has taken a significant step to bolster financial inclusion in emerging markets through a strategic investment of $18.75 million in XREX Group, a blockchain-enabled financial institution. This partnership aims to revolutionize cross-border B2B payments and advance regulatory technology, while introducing a new stablecoin, XAU1, to the market.
Tether’s investment in XREX is set to transform the landscape of cross-border business-to-business (B2B) payments, particularly in emerging markets. By leveraging Tether’s USDT stablecoin, XREX aims to facilitate regulatory-compliant transactions that promise greater efficiency and potentially lower costs. This initiative is expected to provide businesses with a seamless and more cost-effective method for international trade, thus fostering economic growth in regions that have historically been underserved by traditional financial systems.
Paolo Ardoino, CEO of Tether, emphasized the significance of this collaboration, stating, “Our partnership with XREX will spearhead several ground-breaking initiatives, including the facilitation of USDT-based cross-border payments, setting a new standard for financial accessibility and efficiency in the region.”
A key highlight of this collaboration is the launch of XAU1, a new stablecoin developed in partnership with the Unitas Foundation. XAU1 is a USD-pegged unitized stablecoin over-reserved with Tether Gold (XAUt). This innovative financial product is designed to offer a stable alternative to volatile currencies and serve as a hedge against inflation. By being over-reserved with Tether Gold, XAU1 aims to provide added security and stability to its users, making it an attractive option for businesses and individuals in emerging markets.
Wayne Huang, CEO of XREX Group, underscored the importance of XAU1, stating, “With Tether’s strong support and investment, we’re expanding this success into a RegTech product line that further refines XREX Group as a responsible financial institution.”
The collaboration between Tether and XREX also focuses on enhancing regulatory technology (RegTech). This involves developing sophisticated tools to detect and prevent the illicit use of stablecoins, thereby ensuring a safer and more compliant digital asset ecosystem. Both companies have a track record of working with law enforcement agencies to combat financial crimes, and this partnership aims to further that commitment by creating advanced RegTech solutions.
“Tether and XREX have collaborated successfully to help law enforcement agencies identify, arrest, and sentence criminals,” Huang noted. “With Tether’s investment, we’re expanding this success into a RegTech product line, refining XREX Group as a responsible financial institution.”
Tether’s investment in XREX is part of its broader strategy to promote financial inclusion and cryptocurrency adoption in emerging markets. By enabling more efficient and secure cross-border payments and introducing stable and innovative financial products like XAU1, Tether and XREX are working to create a more interconnected and inclusive financial landscape. This initiative is supported by a robust investor lineup, including the Taiwanese Government National Development Fund, SBI Holdings, and CDIB Capital Group, which underscores the confidence in XREX’s mission and capabilities.
