Cross-border payments startup XREX has secured $18.75 million from Tether, the issuer of the USDT stablecoin, to enhance the use of USDT-based payments in emerging markets. Founded by Wayne Huang and Winston Hsiao, XREX aims to leverage this investment to expand its stablecoin cross-border business-to-business (B2B) payment services.
According to a press release dated June 5, the Taipei-based company will use the $18.75 million investment to facilitate compliant USDT-based cross-border B2B payments in emerging markets. This initiative is set to revolutionize financial transactions by offering businesses enhanced ease, efficiency, and potentially lower costs. Additionally, XREX will collaborate with the Unitas Foundation to launch XAU1, a stablecoin backed by Tether Gold (XAUt), designed to provide a hedge against inflation.
Tether CEO Paolo Ardoino highlighted the significance of the collaboration, stating, “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 payments, setting a new standard for financial accessibility and efficiency in the region.”
Founded in 2018, XREX has attracted a diverse array of investors, including the Taiwanese Government National Development Fund, CDIB Capital Group, and SBI Holdings. The recent investment follows XREX Singapore’s acquisition of a license from the Monetary Authority of Singapore to offer its services in the region.
For Tether, this investment marks another step in its strategy to expand its global footprint. In early May, Tether announced its expansion into Eastern Europe with an investment in the Georgian payment service CityPay. Furthermore, Tether signed a memorandum of understanding with RAK Digital Assets Oasis (RAK DAO) to launch several strategic initiatives aimed at promoting the adoption of Bitcoin technology and stablecoins in Ras Al Khaimah (RAK), the northernmost emirate in the UAE.
The partnership between Tether and XREX underscores the growing importance of stablecoins in facilitating efficient and accessible financial transactions in emerging markets, paving the way for broader adoption of digital financial solutions globally.
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