Tether, the largest company in the digital asset industry, has announced a strategic investment of $18.75 million in Taiwan’s XREX Group, a fully regulated blockchain-enabled financial institution. This partnership aims to drive innovation in the digital asset industry, facilitate USDT-based cross-border payments in emerging markets, and innovate regulatory technology.
Funded by Tether, XREX will facilitate compatible USDT-based cross-border B2B payments in emerging markets, revolutionizing financial transactions by offering businesses greater convenience, efficiency and potentially lower costs. In addition, XREX will partner with the Unitas Foundation to launch XAU1, a USD-pegged unified stablecoin that is over-pegged with Tether Gold (XAUt), providing customers with a stable alternative and a hedge against inflation.
The parties stated that this collaboration will lead to innovation in Regulatory Technology (RegTech), enhancing solutions to detect and prevent illegal use of stablecoins. Tether’s commitment to responsible financial stewardship aligns with XREX’s dedication to promoting a secure, accessible and trusted environment for all crypto users in emerging markets.
Paolo Ardoino, CEO of Tether said,
“Tether’s strategic investment in XREX Group signals our unwavering commitment to advancing financial inclusion in emerging markets. Our partnership with XREX will spearhead many ground-breaking initiatives, including the launch of a unique new unified 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. This latest investment aligns with Tether’s long-term vision of building a resilient infrastructure that extends beyond the boundaries of the crypto market, as evidenced by our diversified investments across various industry sectors.”
Wayne Huang, CEO of XREX Group added,
“Tether and XREX have successfully partnered to help law enforcement agencies identify, apprehend and convict criminals. With Tether’s strong support and investment, we are expanding this success into a suite of RegTech products that further enhances XREX Group as a responsible financial institution.”
Winston Hsiao, XREX Group CRO said,
“We thank Tether and all existing investors for supporting this raise round, which involved the issuance of new (common) shares of the team to fuel our recruitment of top talent. This financial inclusion movement enabled by a stable currency will bring long-term and positive change to existing global clearing and settlement systems.”
XREX boasts an impressive lineup of investors including the National Development Funds of the Government of Taiwan, 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 license of the Monetary Authority of Singapore’s Greater Payments Institution, while XREX operates under the Taiwan Financial Supervisory Commission’s Registered VASP status.
Today’s announcement further highlights Tether’s ongoing efforts to drive cryptocurrency adoption in emerging markets worldwide, while empowering underserved communities that share the company’s vision for a more connected and inclusive financial landscape.
About Tether and USD₮
Tether is a pioneer in stablecoin technology, aiming to revolutionize the global financial landscape. With a mission to provide accessible, safe and efficient economic, communication and energy infrastructure. Tether enables greater financial inclusion and resilience in communication, fosters economic growth and empowers individuals and businesses alike.
As the creator of the largest, most transparent and liquid stablecoin in the industry, Tether is dedicated to building sustainable and resilient infrastructure to benefit underserved communities. Leveraging cutting-edge blockchain and peer-to-peer technology, it is committed to bridging the gap between traditional financial systems and the possibilities of decentralized finance.
About XREX
XREX is a blockchain-enabled financial institution that works with banks, regulators and users to redefine banking together. It provides business-grade banking services to small and medium-sized enterprises (SMEs) in or engaged in emerging markets and beginner-friendly financial services to individuals worldwide.
Founded in 2018 and operating globally under multiple licenses, XREX offers a full range of services such as digital asset custody, wallet, cross-border payments, fiat crypto conversion, crypto exchange, asset management and fiat on-off ramps.
Sharing the social responsibility of financial inclusion, XREX leverages blockchain technologies to further financial inclusion, access and education.