Tether’s $18.75M Investment in XREX Group Set to Transform Cross-Border Payments
- Tether invests $18.75 million in XREX Group to boost financial inclusion and facilitate USDT-based cross-border payments.
- Tether’s investment in XREX comes amidst an impressive growth and restructuring efforts.
In a recent blog, Tether, a prominent figure in the digital asset industry, committed $18.75 million in a strategic investment in XREX Group. The alliance is poised to drive innovation, particularly in facilitating USDT-based cross-border payments within emerging markets and spearheading regulatory technology advancements.
With Tether’s substantial investment, XREX Group is promising businesses enhanced ease, efficiency, and potentially reduced costs. By leveraging Tether’s support, XREX Group aims to facilitate compliant, USDT-based cross-border B2B payments, marking a significant stride towards greater financial accessibility in these regions.
In tandem with this collaboration, XREX Group intends to partner with the Unitas Foundation to introduce XAU1, a USD-pegged unitized stablecoin over-reserved with Tether Gold (XAUt). This stablecoin initiative provides customers with a reliable alternative and serves as a hedge against inflation, further fortifying financial stability amidst market fluctuations.
Innovating Regulatory Technology
At the cornerstone of this partnership is the drive to innovate in Regulatory Technology (RegTech) which aims to bolster solutions for detecting and preventing the illicit use of stablecoins. Tether’s commitment to responsible financial stewardship resonates with XREX Group’s dedication to fostering a secure and accessible environment for all crypto users within emerging markets.
Wayne Huang, CEO of XREX Group, expresses gratitude for Tether’s support and investment, envisioning an expansion of successful collaborations into a comprehensive RegTech product line. This strategic move positions XREX Group as a responsible financial institution dedicated to upholding integrity and security within the digital asset ecosystem.
Winston Hsiao, XREX Group CRO, extends gratitude to Tether and existing investors for their unwavering support. The influx of funds will bolster top talent recruitment efforts, further driving the stablecoin-enabled financial inclusion movement and catalyzing positive change within global clearance and settlement systems.
Impressive Investor Lineup
XREX Group boasts an impressive array of investors, including the Taiwanese Government National Development Fund, CDIB Capital Group, SBI Holdings, and E.Sun Financial Holding. Such robust backing underscores confidence in XREX Group’s mission to revolutionize financial systems and drive impactful change.
XREX Group’s recent acquisition of the Monetary Authority of Singapore’s Major Payment Institution license reflects its unwavering commitment to regulatory compliance and adherence to industry standards. Operating under the Taiwan Financial Supervisory Commission’s Registered VASP status further solidifies XREX Group’s reputation as a trusted player in the digital asset industry.
Steady Growth Amid Market Turbulence
Tether’s investment in XREX comes amidst its impressive growth and restructuring efforts. With reported net profits of $4.52 billion in Q1 2024, Tether continues to thrive in the market, driven by financial gains from Bitcoin and gold investments. Despite recent competition from Circle’s USDC, Tether remains dominant with over 68% market share and a market cap exceeding $100 billion.
Furthermore, Tether’s venture into the healthcare sector with a $200 million investment in Blackrock Neurotech underscores its commitment to diversification and long-term growth strategies.
Tether’s investment in XREX is part of a larger trend of strategic moves by the stablecoin issuer. Recent agreements, such as the private sale agreement with Bitcoin mining firm Bitdeer, demonstrate Tether’s commitment to expanding its influence and capabilities in the cryptocurrency and blockchain.
