Cross-border payments company XREX has raised $18.75 million from Tether to increase the number of applications for USDT-based payments in developing countries.
Key Points:
- To foster innovation in digital banking and improve cross-border payments, Tether has invested $18.75 million in XREX Group.
- This partnership aims to introduce a new stablecoin to developing economies and simplify USDT-based transactions.
- XREX is reaffirming its commitment to prudent financial management and compliance by enhancing its RegTech solutions.
Tether, the largest USDT stablecoin issuer, has made a significant investment of $18.75 million in the Taiwan-based cryptocurrency exchange XREX Group. This action leverages Tether’s stablecoin, USDT, to improve financial inclusion in emerging countries.
Promoting innovation in the sector of digital assets
The biggest player in the digital asset space, Tether, revealed an $18.75 million investment in XREX Group. The financial organization, XREX Group, is blockchain-enabled and completely regulated. The goal of this partnership is to foster innovation in the digital asset space, namely in the areas of regulatory technology advancement and USDT-based cross-border payments in emerging countries. Using Tether’s funding, XREX will enable legal cross-border B2B payments in developing economies. This use of USDT will revolutionize financial transactions. Businesses will benefit from increased simplicity, effectiveness, and perhaps even lower expenses. XREX will partner with the Unitas Foundation. They will introduce a USD-pegged stablecoin, XAU. This stablecoin will be over-reserved using Tether Gold (XAUt). Customers will benefit from XAU1’s stability and inflation protection.
Tether CEO Paolo Ardoino emphasized the creative possibilities of this partnership. Ardoino highlighted several important projects, such as the launch of a new unitary stablecoin by the Unitas Foundation and the advancement of USDT-based cross-border payments. By setting new standards for financial efficiency and accessibility in the region, these initiatives are expected to encourage greater financial inclusion.
Enhancing access to finance and compliance
Law enforcement agencies have already used Tether and XREX’s effective partnership to help identify, capture, and punish criminals. XREX is growing this success into a RegTech product line with Tether’s strong backing and investment, further solidifying XREX Group as a responsible financial enterprise.
The notable list of investors in XREX includes Black-marble, SBI Holdings, E. Sun Financial Holding, AppWorks, ThreeD Capital, CDIB Capital Group, and the National Development Fund of the Taiwan government. Recently, the Monetary Authority of Singapore granted XREX Singapore a license as a major payment institution. According to the Taiwan Financial Supervisory Commission, XREX is operating under registered VASP status.
