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Tether’s Strategic Investment in XREX Group

Tether, a global digital asset firm, has invested $18.75 million in XREX Group, a Taiwanese blockchain-enabled financial institution. The goal of this partnership is to improve cross-border USDT-based payments in developing economies and stimulate innovation in digital assets.

Tether and XREX Group partnership represented with digital currency symbols and a world map.
Source: https://www.bloomberg.com/
Key AspectDetails
Investment Amount$18.75 million
Investing CompanyTether
Recipient CompanyXREX Group
LocationTaiwan
GoalsInnovate digital assets, enhance cross-border payments, develop stablecoins, boost RegTech
Major StakeholdersTether, XREX, Unitas Foundation
Services Provided by XREXDigital asset custody, wallet services, cross-border payments, etc.
Significant InvestorsTaiwanese Government National Development Fund, CDIB Capital Group, etc.
Regulatory LicensesMonetary Authority of Singapore, Taiwan Financial Supervisory Commission

Goals and Benefits

  • Innovative Financial Solutions:
    • Tether’s investment will enable XREX to enhance USDT-based cross-border B2B payments.
    • This aims to make financial transactions easier, more efficient, and potentially less expensive for businesses in emerging markets.
  • Stablecoin Development:
    • XREX will collaborate with the Unitas Foundation to launch XAU1, a USD-pegged stablecoin backed by Tether Gold (XAUt).
    • This stablecoin will offer a reliable alternative and hedge against inflation.
  • Regulatory Technology (RegTech):
    • The partnership will boost innovation in RegTech, improving methods to detect and prevent illicit use of stablecoins.
  • Financial Inclusion:
    • Tether’s investment aligns with its goal of fostering financial inclusion in emerging markets.
    • The collaboration aims to create a safe, accessible, and trusted environment for all crypto users.

Statements from Leadership

  • Paolo Ardoino, CEO of Tether:
    • Emphasized Tether’s commitment to financial inclusion.
    • Highlighted the importance of this investment in setting new standards for financial accessibility and efficiency.
    • Stressed Tether’s vision of building resilient infrastructure beyond the crypto market.
  • Wayne Huang, CEO of XREX Group:
    • Noted the successful collaboration with Tether in aiding law enforcement.
    • Mentioned the expansion into a RegTech product line to enhance XREX’s reputation as a responsible financial institution.
  • Winston Hsiao, CRO of XREX Group:
    • Discussed the positive impact of stablecoin-enabled financial inclusion on global clearance and settlement systems.
    • Thanked Tether and other investors for their support.

XREX Group Overview

  • Founded: 2018
  • Services:
    • Digital asset custody
    • Wallet services
    • Cross-border payments
    • Fiat-crypto conversion
    • Cryptocurrency exchange
    • Asset management
    • Fiat currency on-off ramps
  • Clients:
    • SMBs in emerging markets
    • Individual users worldwide

Investors and Licenses

  • Investors:
    • Taiwanese Government National Development Fund
    • CDIB Capital Group
    • SBI Holdings
    • E.Sun Financial Holding
    • ThreeD Capital
    • AppWorks
    • BlackMarble
    • New Economy Ventures
  • Licenses:
    • License for Major Payment Institution issued by Singapore’s Monetary Authority
    • The Taiwan Financial Supervisory Commission’s registered VASP status

Impact of Investment

Tether’s investment in XREX supports ongoing efforts to promote cryptocurrency adoption in emerging markets. It aims to empower under-served communities, fostering a more interconnected and inclusive financial landscape.

June 7, 2024 at 12:00 pm

Updated June 7, 2024 at 12:00 pm

Disclaimer

Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions. (Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)

FAQ

Tether has invested $18.75 million in XREX Group.

The investment aims to enhance cross-border USDT-based payments, innovate digital assets, and foster financial inclusion in developing economies.

XREX Group provides digital asset custody, wallet services, cross-border payments, fiat-crypto conversion, cryptocurrency exchange, asset management, and fiat currency on-off ramps.

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