Tether Invests $18.75M in XREX Group to Boost Financial Inclusion and Innovation

Tether, the leading player in the digital asset industry, has made a strategic investment of $18.75 million in XREX Group, a fully regulated, blockchain-enabled financial institution. This partnership aims to drive significant advancements in the digital asset sector, specifically targeting USDT-based cross-border payments in emerging markets and pioneering regulatory technology.

Expanding Financial Services in Emerging Markets

With Tether’s substantial funding, XREX will revolutionize cross-border B2B payments in emerging markets using USDT, promising enhanced ease, efficiency, and reduced costs for businesses. In addition, XREX will collaborate with the Unitas Foundation to introduce XAU1, a USD-pegged unitized stablecoin over-reserved with Tether Gold (XAUt). This initiative aims to offer a stable alternative and a hedge against inflation, providing customers with more secure financial options.

This collaboration will also enhance regulatory technology (RegTech), improving solutions to detect and prevent illicit activities involving stablecoins. Tether’s dedication to responsible financial practices aligns perfectly with XREX’s mission to create 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 payment, 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, as demonstrated by our diversified investments in various industry sectors.”

Wayne Huang, CEO of XREX Group, emphasized the importance of this partnership in enhancing regulatory measures: “Tether and XREX have collaborated successfully to help 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.”

Winston Hsiao, CRO of XREX Group, expressed gratitude for the support: “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. This stablecoin-enabled financial inclusion movement will bring long-term and positive change to the existing global clearance and settlement systems.”

XREX boasts an impressive lineup of investors, 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 secured the Monetary Authority of Singapore’s Major Payment Institution license, while XREX operates under Taiwan Financial Supervisory Commission’s Registered VASP status.