Tether has contributed $18.75 million to the cross-border payments firm XREX to enhance the use cases of USDT-based payments in developing nations.
In order to increase the amount of stablecoin cross-border business-to-business (B2B) payments made in emerging economies, Tether, the company that issues the USDT stablecoin, has contributed close to $19 million to XREX, a cross-border cryptocurrency exchange platform formed by Wayne Huang and Winston Hsiao.
The Taipei-based company intends to utilize $18.75 million to support “compliant, USDT-based cross-border B2B payments in emerging markets, revolutionizing financial transactions by offering businesses greater ease, efficiency, and potentially lower costs,” according to a press statement dated June 5.
As part of the deal, XREX and the Unitas Foundation will also collaborate to introduce XAU1, a stablecoin backed by Tether Gold (XAUt), which will serve as a “hedge against inflation.” Tether CEO Paolo Ardoino stated:
“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.”
XREX was established in 2018 and had a diverse investor base, including the National Development Fund of the Taiwanese government, CDIB Capital Group, and SBI Holdings.
The investment follows XREX Singapore’s recent acquisition of a license from the Monetary Authority of Singapore to provide services in the area. Tether made this investment as a part of a recent push to increase the company’s global footprint.
Tether announced at the beginning of May that it would expand into Eastern Europe by investing in the CityPay payment service based in Georgia. In addition, the stablecoin issuer and RAK Digital Assets Oasis (RAK DAO) inked a memorandum of understanding to initiate several “strategic initiatives” targeted at encouraging the uptake of stablecoins and Bitcoin technology in Ras Al Khaimah (RAK), the UAE’s northernmost emirate.
