Markets
Tether Invests $18.75 Million in XREX Group to Bolster Crypto-Based Cross-Border Payments in Emerging Markets
Tether has invested $18.75 million in XREX Group, a fully regulated, blockchain-powered financial institution. This investment is part of a broader strategy to improve the use of USDT, Tether’s stablecoin, in cross-border business-to-business (B2B) transactions, especially in emerging markets.
This collaboration with XREX is not just about injecting money into another crypto venture; these are strategically innovative financial transactions in regions that are often ignored by mainstream financial services. By leveraging the stability of USDT, Tether and XREX aim to provide a more efficient and cost-effective alternative for companies operating across borders.
One of the most intriguing aspects of this partnership is the launch of XAU1, a new stablecoin backed by Tether Gold (XAUt). This initiative, carried out in collaboration with the Unitas Foundation, was designed to offer a stable means of exchange indexed to the US dollar, but backed by physical gold, providing a hedge against inflation – something extremely important in emerging economies affected by exchange rate volatility.
This investment also marks a deep dive into Regulatory Technology (RegTech). The combined efforts of Tether and XREx aim to improve mechanisms for detecting and preventing the illicit use of stablecoins. Such advances are crucial at a time when the global regulatory landscape for cryptocurrencies is becoming increasingly complex and scrutinized.
Paolo Ardoino, CEO of Tether, noted that this is in line with Tether’s commitment to building resilient infrastructure that transcends the traditional boundaries of the crypto market.
“Our collaboration with XREX will spearhead several innovative initiatives, setting a new standard for financial accessibility and efficiency in the region,” said Ardoino.
The strategic importance of Tether’s investment is further underscored by XREX’s regulatory achievements. The company recently acquired a major payment institution license from the Monetary Authority of Singapore and operates under registered VASP status from the Taiwan Financial Supervisory Commission. Such credentials enhance XREX’s credibility and operational scope, making it a formidable ally in Tether’s expansion plans.
XREX CEO Wayne Huang highlighted past successes in collaborating with law enforcement to combat financial crimes and noted that this investment would help expand its RegTech capabilities.
“With Tether’s strong support and investment, we are expanding this success into a RegTech product line that further refines XREX Group as a responsible financial institution,” said Huang.
The investment comes at a time when cryptocurrency is gaining widespread acceptance but faces persistent challenges around regulation, trust and the need for a stable financial environment conducive to large-scale adoption. Tether’s funding is a vote of confidence not only in XREX, but also in the potential of cryptocurrencies to facilitate significant financial innovation.
With the support of other high-profile investors, including the Taiwan Government’s National Development Fund and entities such as SBI Holdings and E.Sun Financial Holding, XREX aims to play a key role in shaping the future of financial transactions in emerging markets.