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Tether Invests $18.75M In XREX Group Boosting Cross-Border Payments

Published

5 months ago

June 5, 2024

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In a strategic move aimed at enhancing the efficiency of cross-border transactions, Tether has announced a significant investment of $18.75 million in XREX Group. This infusion of capital shows Tether’s commitment to fostering innovation within the global payment ecosystem. By partnering with XREX, a company known for its cutting-edge financial technology solutions, Tether aims to streamline and bolster the infrastructure for international payments. This investment offers increased reliability and speed in the transfer of funds across borders.

Driving Innovation in the Digital Asset Industry

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. This collaboration aims to drive innovation in the digital asset industry, particularly in facilitating USDT-based cross-border payments in emerging markets and advancing regulatory technology. With Tether’s funding, XREX will facilitate compliant, USDT-based cross-border B2B payments in emerging markets, revolutionizing financial transactions by offering businesses greater ease, efficiency, and potentially lower costs. Additionally, XREX will work 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.

This collaboration will 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 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.”

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Expanding Financial Inclusion and Compliance

Tether and XREX have a history of successful collaboration in assisting law enforcement agencies to identify, arrest, and sentence criminals. With Tether’s strong support and investment, XREX is expanding this success into a RegTech product line, further refining XREX Group as a responsible financial institution. “We thank Tether and all existing investors for supporting this up round, which involved an issuance of new team (common) shares to fuel our top talent recruiting.

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 the Taiwan Financial Supervisory Commission’s Registered VASP status.

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