Tether, the global digital asset firm, has announced a strategic investment of $18.75 million in XREX Group, a Taiwan-based fully regulated, blockchain-enabled financial institution.

This collaboration aims to drive innovation in the digital asset industry, facilitate USDT-based cross-border payments in emerging markets, and innovate regulatory technology, XREX said in a statement on Wednesday.

With Tether’s funding, XREX will facilitate compliant, USDT-based cross-border business to business (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 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, Chief Executive Officer 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,” he added.

XREX Group Chief Executive Officer Wayne Huang said that 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,” he added.

XREX Group Chief Revenue Officer Winston Hsiao added that this stablecoin-enabled financial inclusion movement will bring long-term and positive change to the existing global clearance and settlement systems.

“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,” he said.

XREX is a blockchain-enabled financial institution working with banks, regulators, and users to redefine banking together.

It provides enterprise-grade banking services to small to medium-sized businesses (SMBs) in or dealing with emerging markets, and novice-friendly financial services to individuals worldwide.

Founded in 2018 and operating globally under multiple licenses, the firm offers a full suite of services such as digital asset custody, wallet, cross-border payment, fiat-crypto conversion, cryptocurrency exchange, asset management, and fiat currency on-off ramps.

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 a Taiwan Financial Supervisory Commission’s Registered VASP status.

Today’s announcement further also underscores Tether’s ongoing endeavors to foster cryptocurrency adoption in emerging markets worldwide, while empowering those under-served communities that share the company’s vision of a more interconnected and inclusive financial landscape.

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