USDT stablecoin issuer Tether has invested $18.75 million in XREX Group. Using the funding, the blockchain-based financial institution will foster cross-border B2B payments in USDT.
XREX will specifically be targeting emerging markets and ensure that the compliance box is checked. By doing so, the companies intend to further advance innovations and product launches in the Regulatory Technology [RegTech] arena.
In tandem, XREX will also work with the Unitas Foundation to put to sea XAU1, a USD-pegged stablecoin that will be over-reserved with Tether Gold [XAUt]. By launching this asset, the company intends to provide users with a stable alternative and a hedge against inflation.
Commenting on the latest development, Paolo Ardoino, CEO of Tether, said,
“This latest investment aligns with Tether's long-term vision of building a resilient infrastructure that extends beyond the confines of the crypto market, as demonstrated by our diversified investments in various industry sectors."
XREX operates as a registered VASP in Taiwan. Alongside, it recently acquired the Major Payment Institution [MPI] license from Singapore’s central bank.
Tether has been investing all across the board of late. Towards the end of last month, Bitdeer and Tether entered into a subscription agreement, whereby the stablecoin issuer agreed to buy up to $150 million worth of shares of the Bitcoin mining company.
Earlier this year, Tether unveiled its plan to re-organize into four new divisions: Tether Data, Tether Finance, Tether Power, and Tether Education, to reflect its broadened mission of looking beyond stablecoins.
Specifically, Data now takes care of strategic investment in tech like AI. Finance will have the USDT and stablecoin base covered. Power handles investments in Bitcoin mining, while Edu caters to educational activities.
Opining on Tether’s latest investment, Winston Hsiao, the CRO of XREX Group said,
“This stablecoin-enabled financial inclusion movement will bring long-term and positive change to the existing global clearance and settlement systems.”
