Tether Invests in XREX Group and Launches XAU1 Stablecoin to Enhance Cross-Border Payments
Jun 5, 2024
Tether, the company behind the popular USDT stablecoin, has announced an $18.75 million strategic investment in XREX Group and the launch of a new stablecoin called XAU1. This move is aimed at improving cross-border business-to-business (B2B) payments and advancing regulatory technology within the digital asset industry. The collaboration with XREX Group will enable regulatory-compliant, Tether-based cross-border B2B payments, potentially offering businesses increased efficiency and reduced costs when conducting international transactions. XREX Group will also introduce XAU1, a stablecoin pegged to the United States dollar and over-reserved with Tether gold (XAUt), providing a stable alternative and hedge against inflation. This initiative is part of Tether's commitment to fostering financial inclusion in emerging markets and marks an expansion into regulatory technology products for XREX Group. Despite stablecoins' pegged values, market dynamics and regulatory uncertainties like the upcoming Markets in Crypto-Assets Regulation (MiCA) rules pose challenges to their stability, prompting exchanges like Binance to transition European users from unauthorised stablecoins to regulated equivalents as regulatory clarity remains crucial for the future of stablecoin adoption.
Previous
Next