Tether and XREX Group, a regulated, blockchain-enabled financial institution, have partnered to improve the technology used to monitor and regulate stablecoin transactions and make it harder for them to be used for illegal purposes.
The USDT stablecoin issuer announced a strategic investment of $18.75 million in the Group. According to the announcement, this investment will help XREX facilitate compliant USDT-based cross-border B2B payments in emerging markets, and offer businesses improved ease, efficiency, and potentially lower costs.
Tether also claims that the investment was to drive innovation in the digital asset sector, facilitate USDT-based cross-border payments in emerging markets, and advance regulatory technology. The company noted that it is committed to responsible financial practices, which aligns with XREX’s mission to create a safe, accessible, and trusted environment for crypto users in emerging markets.
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“Tether’s investment in XREX Group shows our dedication to promoting financial inclusion in emerging markets,” stated Paolo Ardoino, CEO of Tether.
According to Ardoino, the partnership will lead to” groundbreaking initiatives”, which include the launch of a new stablecoin, XAU1, a USD-pegged unitized stablecoin over-reserved with Tether Gold (XAUt).
Notably, XREX will collaborate with the Unitas Foundation to launch this new “unitized” token to provide a “stable alternative and hedge against inflation.”
The XREX Group is an active player and critical stakeholder in the stablecoin sector of the cryptocurrency-based financial industry, especially in the Asia region. In a recent report by USDC issuer Circle Internet Financial, the Group’s use of its stablecoin in money transfer and remittances was highlighted as a major factor in USDC’s use in Asia’s remittances.
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Tether’s investment was part of a funding round for XREX Group, and the investor lineup for the round included the Taiwanese Government National Development Fund, SBI Holdings, E.Sun Financial Holding, ThreeD Capital, AppWorks, BlackMarble, and New Economy Ventures.
Winston Hsiao, CRO of XREX Group, thanked Tether for the investment and praised its drive to make financial inclusion for all markets a reality.
“We appreciate Tether and all existing investors for supporting this funding round, which involved issuing new team shares to recruit top talent. This stablecoin-enabled financial inclusion movement will bring significant and positive changes to global clearance and settlement systems.”
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