Tether invests $600 million in XREX Group to promote inclusive finance in emerging markets

The leading industry player in global digital assets, Tether, has announced a strategic investment of $18.75 million, approximately NT$600 million, in XREX Group, an international financial institution that combines compliance with blockchain technology. This collaboration aims to drive innovation in the digital asset industry, accelerate the application of Tether's US dollar stablecoin USDT in cross-border payments in emerging markets, and foster innovation in regulatory technology (RegTech).

The industry leader in global digital assets, Tether, has announced a strategic investment of $18.75 million, approximately NT$600 million, into XREX Group, an international financial institution that combines compliance with blockchain technology. This collaboration aims to drive innovation in the digital asset industry, accelerate the cross-border payment applications of Tether's US dollar stablecoin USDT in emerging markets, and promote innovation in regulatory technology (RegTech).

With the funding from Tether, XREX will deepen its presence in emerging markets, facilitate compliant enterprise-level B2B cross-border payments, utilize USDT as a core foundation to provide businesses with more convenient, efficient, and cost-effective services, and drive the transformation of financial transactions in emerging markets. Additionally, XREX will collaborate with Unitas Foundation to launch XAU1, a unit currency backed by excess reserves of Tether Gold (XAUt) linked to the value of the US dollar, offering stablecoin users a robust financial alternative and a hedge against inflation.

This partnership will also promote innovative products and services in regulatory technology to enhance the detection and prevention of illicit activities involving stablecoins. Tether's commitment to financial due diligence governance and XREX's mission to create a secure, seamless, and trustworthy environment for cryptocurrency users in emerging markets align closely.

Paolo Ardoino, CEO of Tether, stated, "Tether’s strategic investment in XREX Group demonstrates our unwavering commitment to advancing inclusive finance in emerging markets. Our collaboration with XREX will lead to more groundbreaking innovations, including the issuance of a unique unit currency by the Unitas Foundation and the wider adoption of cross-border payments based on USDT, setting new benchmarks for financial inclusion and transaction efficiency in emerging markets. Tether's long-term vision is to establish a resilient infrastructure that extends beyond the cryptocurrency market, as reflected in this latest investment, similar to our diversified investments in various industries."

Huang Yaowen, Co-Founder and CEO of XREX, mentioned, "Tether and XREX have previously collaborated to assist law enforcement in identifying, arresting, and prosecuting wrongdoers. These successful experiences, supported and extended by Tether's strong backing and investment, will now expand into product development in regulatory technology, further solidifying XREX Group's position as a responsible financial institution."

Xiao Huizong, Co-Founder and Chief Revenue Officer of XREX, expressed gratitude for the support of existing investors in this round of premium capital increase, which includes the issuance of common shares distributed to team members to attract top talent to join XREX. The inclusive finance movement sparked by stablecoins will bring long-term and positive changes to the existing international clearing and settlement systems.

XREX boasts a strong lineup of investors, including the Executive Yuan National Development Fund, Chunghwa Development (TWSE: 2883), SBI Investment (TYO: 8473), Yuanta Venture Capital (TWSE: 2884), ThreeD Capital (CSE: IDK), AppWorks Ventures, Wanhua Capital, and New Economy Ventures, among others.

XREX recently obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), and in Taiwan, XREX is a qualified operator that has completed the compliance statement under the Anti-Money Laundering Act issued by the Financial Supervisory Commission.

This investment announcement further demonstrates Tether's relentless efforts to promote the adoption of cryptocurrencies in global emerging markets and provide solid support to underserved populations who share Tether's vision of creating a more interconnected and inclusive financial environment.