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Stablecoin and blockchain technology provider Tether has announced an investment of $18.75M in XREX Group, a regulated, blockchain-enabled financial institution. The investment aims to drive innovation in the digital asset industry, facilitate USDT-based cross-border payments in emerging markets, and develop regulatory technology.
With Tether's funding, XREX will support compliant, USDT-based cross-border B2B payments in emerging markets, offering businesses greater ease, efficiency, and potentially lower costs. XREX will also collaborate with the Unitas Foundation to launch XAU1, a USD-pegged stablecoin over-reserved with Tether Gold (XAUt), providing customers with a stable alternative and a hedge against inflation.
The collaboration will focus on enhancing Regulatory Technology (RegTech) solutions to detect and prevent illicit use of stablecoins, aligning with Tether's commitment to responsible financial stewardship and XREX's dedication to fostering a safe and trusted environment for crypto users in emerging markets.
Paolo Ardoino, CEO, Tether
"Tether's strategic investment in XREX Group signifies our unwavering commitment to fostering financial inclusion in emerging markets," said Paolo Ardoino, CEO of Tether. "Our collaboration with XREX will spearhead several groundbreaking initiatives, including the launch of a unique new unitized stablecoin by the Unitas Foundation and the facilitation of USDT-based cross-border payment, setting a new standard for financial accessibility and efficiency in the region. This latest investment aligns with Tether's long-term vision of building a resilient infrastructure that extends beyond the confines of the crypto market, as demonstrated by our diversified investments in various industry sectors."
Wayne Huang, Group CEO, XREX
"Tether and XREX have collaborated successfully to help law enforcement agencies identify, arrest, and sentence criminals," says Wayne Huang, XREX Group CEO. "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."
Winston Hsiao, CRO, XREX Group
"We thank Tether and all existing investors for supporting this up round, which involved an issuance of new team (common) shares to fuel our top talent recruiting. This stablecoin-enabled financial inclusion movement will bring long-term and positive change to the existing global clearance and settlement systems," says Winston Hsiao, XREX Group CRO.
XREX's investor lineup includes 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. XREX Singapore recently obtained the Monetary Authority of Singapore's Major Payment Institution license, while XREX operates under a Taiwan Financial Supervisory Commission's Registered VASP status.
Tether's official announcement to the press today said “Today’s announcement further underscores Tether’s ongoing endeavors to foster cryptocurrency adoption in emerging markets worldwide, while empowering those under-served communities that share the company’s vision of a more interconnected and inclusive financial landscape.”
