Tether Invests $18.75M in XREX Group to Enhance Financial Inclusion
Caroline Bishop Jun 07, 2024 03:17
Tether invests $18.75M in XREX Group to drive financial inclusion in emerging markets.
Tether, the largest company in the digital asset industry, has announced a strategic investment of $18.75 million in XREX Group, a fully regulated, blockchain-enabled financial institution, according to tether.io. This collaboration aims to drive innovation in the digital asset industry and facilitate USDT-based cross-border payments in emerging markets.
Investment Details and Objectives
With the investment from Tether, XREX will work to facilitate compliant, USDT-based cross-border B2B payments, revolutionizing financial transactions by offering businesses greater ease, efficiency, and potentially lower costs. Additionally, XREX plans to collaborate with the Unitas Foundation to launch XAU1, a USD-pegged unitized stablecoin over-reserved with Tether Gold (XAUt), providing customers with a stable alternative and a hedge against inflation.
RegTech Innovations
This partnership will also drive innovation in Regulatory Technology (RegTech), enhancing solutions to detect and prevent the illicit use of stablecoins. Tether’s commitment to responsible financial stewardship aligns with XREX’s dedication to fostering a safe, accessible, and trusted environment for all crypto users in emerging markets.
“Tether’s strategic investment in XREX Group signifies our unwavering commitment to fostering financial inclusion in the 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 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 confines of the crypto market.”
Collaboration and Future Plans
XREX CEO Wayne Huang highlighted the collaborative efforts between Tether and XREX in helping law enforcement agencies identify, arrest, and sentence criminals. “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,” Huang stated.
Winston Hsiao, XREX Group CRO, expressed gratitude towards Tether and existing investors for supporting their efforts to fuel the recruitment of top talent. “This stablecoin-enabled financial inclusion movement will bring long-term and positive change to the existing global clearance and settlement systems,” Hsiao noted.
Impressive Investor Lineup
XREX boasts an impressive investor lineup, including the Taiwanese Government National Development Fund, CDIB Capital Group, SBI Holdings, E.Sun Financial Holding, ThreeD Capital, AppWorks, BlackMarble, and New Economy Ventures. XREX Singapore recently acquired the Monetary Authority of Singapore’s Major Payment Institution license, while XREX has been operating under a Taiwan Financial Supervisory Commission’s Registered VASP status.
Today’s announcement underscores Tether’s ongoing efforts to foster cryptocurrency adoption in emerging markets worldwide, while empowering underserved communities that share the company’s vision of a more interconnected and inclusive financial landscape.
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