Tether has announced an investment of $18.75 million in XREX Group. This funding aims to enhance USDT-based cross-border payments, particularly in emerging markets.
This development comes as Tether is trying to expand its business in various sectors.
Tether Aims to Facilitate Compliant Cross-Border Payment System
Tether, the issuer of the stablecoin USDT, is joining forces with XREX, a blockchain-enabled, fully regulated financial institution. Together, they will innovate in regulatory technology and facilitate compliant, business-to-business payments across borders. This collaboration promises to streamline transaction processes and reduce operational costs.
Moreover, the investment will support the launch of XAU1, a unique stablecoin pegged to the USD and over-reserved with Tether Gold (XAUt). This initiative claims to hedge against inflation, providing customers with a stable and secure transaction alternative.
Read more: 9 Best Crypto Wallets to Store Tether (USDT)
XREX CEO Wayne Huang highlighted the partnership’s past successes.
“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,” Huang said.
The significance of this partnership is underscored by XREX’s backers, which include heavyweights such as the Taiwanese Government National Development Fund, CDIB Capital Group, and SBI Holdings, among others. Additionally, XREX has bolstered its regulatory standing by acquiring the Major Payment Institution license from the Monetary Authority of Singapore, complementing its existing registration under Taiwan’s Financial Supervisory Commission.
This investment is part of Tether’s broader strategy of diversifying its portfolio across various sectors. It mainly wants to expand into four sectors – Data, Finance, Power, and Education.
Recently, Tether has ventured into crypto mining and artificial intelligence, significantly broadening its operational scope and reinforcing its commitment to technological innovation.
Read more: Top 12 Crypto Companies to Watch in 2024
Earlier this month, Tether invested $100 million in Bitdeer Technologies, a well-known name in the Bitcoin mining sector. This move, along with a potential additional investment, aims to expand Bitdeer’s data centers and enhance its R&D capabilities, thereby strengthening the Bitcoin mining infrastructure.
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