In a significant move within the blockchain and cryptocurrency space, Tether, the company behind the widely-used stablecoin USDT, has announced an $18.75 million strategic investment into Taiwan’s XREX Group. XREX is recognized as a fully regulated, blockchain-enabled financial firm that is carving a niche for itself within the burgeoning market of digital asset solutions.
This investment signals Tether’s intention to push further into the markets of emerging economies, focusing on leveraging blockchain technology to make cross-border payments more accessible and efficient. The collaboration is set to drive innovation within the digital asset sphere and streamline USDT-based transactions for businesses and individuals in emerging markets who are in need of reliable and affordable payment solutions.
Adding a layer of stability to the volatile crypto markets, XREX is partnering with the Unitas Foundation to introduce XAU1, a stablecoin that is over-collateralized with Tether Gold. This move is designed to offer a dependable alternative for customers seeking a hedge against inflation—highlighting the emerging trend of commodity-backed digital currencies that represent a safe-haven asset.
At the helm of Tether, Paolo Ardoino conveyed the company’s dedication to enhancing financial inclusion across less-developed economies. Ardoino emphasized Tether’s pioneering efforts in creating initiatives that are not only innovative but also serve to bridge the financial gap encountered in these regions.
Wayne Huang, CEO of the XREX Group, acknowledged the success of previous collaborations with Tether, which have spanned assisting law enforcement agencies in their investigative efforts. Expanding on this, Huang expressed excitement about the potential to grow into a regulatory technology product line that can aid compliance and monitoring tasks within the digital assets world.
Expressing gratitude for Tether’s investment, Winston Hsiao, Chief Risk Officer of XREX Group, stressed the importance of stablecoin-enabled financial inclusion, which he believes can deliver transformative effects to global clearance and settlement ecosystems. By providing more stable and efficient transactions, this movement holds the potential to reshape financial interactions on an international scale.
Adding to its credibility, XREX boasts an investment portfolio that includes heavyweight names such as the Taiwanese Government National Development Fund, CDIB Capital Group, and SBI Holdings, highlighting the trust and potential seen by numerous institutional investors. Moreover, XREX has recently expanded its regulatory footprint by acquiring a Major Payment Institution license from the Monetary Authority of Singapore and operates under the Taiwanese Financial Supervisory Commission’s Registered VASP status.
This strategic investment by Tether into XREX is more than a mere financial transaction—it’s a partnership that is poised to catalyze the adoption and innovation of blockchain-based financial services in emerging markets. The aim is clear: to empower these economies with cutting-edge technology that can lead to a more inclusive and equitable financial system worldwide.
