Tether Injects $18.75M in XREX Group to Boost USDT Adoption

Tether, the issuer of the stablecoin USDT, has announced an $18.75 million investment in XREX Group, a Taiwan-based blockchain-based company. The investment aims to transform USDT-based cross-border payments and introduce other Tether-tied products to the Taiwanese financial market.

Collaborative Efforts Between Tether and XREX

According to an official announcement, the new funding will be used to improve cross-border business payments in financial markets using USDT, changing how financial transactions work for businesses, and making them easier, more efficient, and possibly cheaper.

XREX will join forces with the Unitas Foundation, a firm issuing unitized stablecoins, to create a unique stablecoin. Using portions of the fresh capital, XREX will debut the XAU1, a stablecoin pegged to the United States dollar, backed by Tether Gold (XAUt). The stablecoin is aimed at providing a stable and inflation-resistant currency option.

The duo teams will also funnel cash into the development of Regulatory Technology (RegTech), a tool that prevents illegal stablecoin usage. Commenting on the partnership and the RegTech solution, XREX Group’s CEO Wayne Huang said:

“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.”

Notably, XREX boasts a solid history of partnering with law enforcement and has garnered support from established investors, such as the Taiwanese government and financial institutions. Tether, on its part, has also helped to confiscate illicit funds in the past.

Tether Expands Business

In recent times, Tether has expanded its tentacles into other companies. Last week, Bitcoin mining firm Bitdeer announced a private sale agreement with Tether for up to $150 million of its shares.

Tether’s investment in Bitdeer was geared towards funding the mining firm’s “data center expansion, ASIC based mining rig development and for working capital and other general corporate purposes.”

In April, Tether launched its flagship stablecoin on the Telegram-affiliated blockchain, The Open Network (TON) to bolster adoption.