Tether Invests $18.75M in XREX Group to Advance Financial Inclusion in Emerging Markets

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The global leader in digital assets, Tether, has announced a strategic investment of $18.75 million—approximately NT$600 million—into XREX Group, a regulated international financial institution powered by blockchain technology. This landmark collaboration marks a pivotal step toward reshaping financial infrastructure in emerging markets, expanding the use of USDT for cross-border payments, and advancing regulatory technology (RegTech) innovation.

With this funding, XREX will deepen its footprint across high-growth emerging economies, focusing on compliant, enterprise-grade (B2B) cross-border payment solutions anchored by USDT. By leveraging blockchain efficiency, the partnership aims to deliver faster, lower-cost transaction services for businesses—driving transformation in financial access and operational efficiency across underserved regions.

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Expanding Stablecoin Utility with XAU1: A New Financial Instrument

A key outcome of the collaboration is the development of XAU1, a novel digital unit set to be issued through the Unitas Foundation in partnership with XREX. XAU1 will be backed by Tether Gold (XAUt), an asset representing physical gold reserves held by Tether, and will maintain a stable value pegged to the U.S. dollar. This hybrid structure offers users a reliable hedge against inflation while preserving the stability and liquidity associated with traditional stablecoins.

For users in volatile economic environments, XAU1 presents a compelling alternative—a digitally native, gold-backed financial instrument that combines security, transparency, and ease of transfer. It also broadens the utility of stablecoins beyond pure fiat parity, introducing real-world asset (RWA) integration into everyday crypto transactions.

This move underscores a growing trend: the convergence of decentralized finance (DeFi) with tangible value stores like precious metals. As inflation pressures persist in many developing nations, tools like XAU1 could become essential components of personal and corporate treasury management.

Strengthening Compliance Through Regulatory Technology

Beyond financial inclusion, the Tether-XREX alliance places strong emphasis on compliance and security. The investment will accelerate joint development in RegTech solutions designed to detect and prevent illicit activities involving stablecoins. Both parties are committed to upholding rigorous financial governance standards, ensuring that innovation does not come at the expense of safety or regulatory adherence.

Tether’s CEO, Paolo Ardoino, emphasized the broader vision:

“Our strategic investment in XREX Group reflects our unwavering commitment to advancing financial inclusion in emerging markets. Together, we’re enabling breakthrough innovations—from new digital units like XAU1 to wider adoption of USDT-based cross-border payments—that set new benchmarks for accessibility and efficiency.”

He added that Tether’s long-term mission extends beyond cryptocurrency ecosystems: building resilient, multi-use infrastructure that serves real-world economic needs across industries.

XREX co-founder and Group CEO, Yawen Huang, highlighted past cooperation with law enforcement agencies supported by Tether’s forensic capabilities. “These proven successes in identifying and assisting in the prosecution of bad actors will now inform our RegTech product development,” he said. “This investment reinforces XREX’s position as a responsible financial institution dedicated to secure and trustworthy digital asset services.”

蕭滙宗 (Hui-Tsung Hsiao), XREX co-founder and Group Chief Revenue Officer, noted that the funding round included equity issuance to team members, reinforcing talent acquisition efforts:

“We’re grateful for the continued support from Tether and our existing investors. This capital empowers us to attract top-tier talent and scale our mission: transforming legacy international clearing systems through stablecoin-driven financial inclusion.”

Strategic Backing and Global Regulatory Milestones

XREX is backed by a robust consortium of institutional investors, including:

These partnerships reflect strong confidence in XREX’s compliance-first approach and scalable business model.

Regulatory progress further validates XREX’s credibility. In May 2024, its Singapore subsidiary secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS)—one of the world’s most stringent fintech regulators. Additionally, XREX has formally complied with anti-money laundering (AML) regulations under Taiwan’s Financial Supervisory Commission (FSC), positioning it as a trusted player in Asia’s evolving digital asset landscape.

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Frequently Asked Questions (FAQ)

Q: What is the purpose of Tether’s investment in XREX?
A: Tether’s $18.75 million investment aims to expand USDT adoption for cross-border payments in emerging markets, support the launch of innovative products like XAU1, and advance RegTech solutions for safer digital finance.

Q: What is XAU1 and how does it work?
A: XAU1 is a digital unit developed with the Unitas Foundation, backed by Tether Gold (XAUt) reserves and pegged to the U.S. dollar. It offers users a stable, inflation-resistant asset combining gold-backed value with blockchain efficiency.

Q: Is XREX regulated?
A: Yes. XREX holds a Major Payment Institution (MPI) license from Singapore’s MAS and complies with AML regulations in Taiwan, ensuring a secure and compliant operating framework.

Q: How will this partnership improve financial inclusion?
A: By enabling faster, cheaper B2B cross-border transactions via USDT and offering accessible crypto entry points for unbanked populations, the collaboration lowers barriers to global financial participation.

Q: What role does RegTech play in this initiative?
A: RegTech tools will help monitor transactions, prevent illicit activity, and ensure compliance—critical for gaining institutional trust and scaling responsibly in regulated markets.

Q: Where can I learn more about USDT-based financial solutions?
A: You can explore real-time applications of stablecoins in global finance through leading platforms driving innovation today.

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Final Thoughts

Tether’s strategic investment in XREX Group signals more than just capital movement—it represents a coordinated push toward a more inclusive, efficient, and secure global financial system. By combining regulatory compliance, real-world asset tokenization, and scalable blockchain infrastructure, this partnership sets a new standard for what responsible fintech innovation can achieve.

As emerging markets continue to leapfrog traditional banking constraints, initiatives like this one will play a crucial role in shaping the future of money—where stability, accessibility, and trust go hand in hand.