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Tether, the leading stablecoin issuer, announced a strategic investment of $18.75 million in XREX, a blockchain-powered payments firm, according to an announcement on Wednesday.
Tether's investment will empower XREX to facilitate seamless, compliant cross-border business-to-business (B2B) payments using USDT, Tether's flagship stablecoin pegged to the US dollar. This integration is expected to significantly enhance transaction efficiency and potentially reduce costs for businesses operating in emerging markets.
The partnership will "[set] a new standard for financial accessibility and efficiency in these regions," Tether CEO Paolo Ardoino said.
Furthermore, the partnership will see XREX collaborate with the Unitas Foundation to launch XAU1, a unique stablecoin pegged to the US dollar and backed by Tether Gold (XAUt). This novel offering provides users with a reliable alternative and a potential hedge against inflation, the company said.
The collaboration extends beyond financial products. Tether and XREX will work together to develop innovative RegTech solutions that strengthen the detection and prevention of illicit activities involving stablecoins.
“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,” Wayne Huang, XREX Group CEO, said.
Headquartered in Taiwan, XREX received a Major Payments Institution (MPI) Licence from the Monetary Authority of Singapore (MAS) in May 2024, and operates under a Registered VASP status from Taiwan's Financial Supervisory Commission.
