Tether, the crypto market's leading stablecoin company, has announced its $18.75M investment in XREX Group, a blockchain-enabled financial institution.

In a press release, Tether, the company behind USDT, said its investment in XREX's gold-backed stablecoin is part of its ongoing efforts to promote global crypto adoption and economic inclusion.

Tether also said it believes its investment will redefine USDT-based cross-border payments in emerging markets and advance regulatory technology.

XAU1: A New Stablecoin

XREX will use the fresh capital to launch XAU1, a stablecoin backed by Tether Gold, in collaboration with the Unitas Foundation. Tether said its stablecoins are meant to be an inflation-resistant alternative across the digital asset market.

"Tether's strategic investment in XREX Group signifies our unwavering commitment to fostering financial inclusion in emerging markets," stated Paolo Ardoino, CEO of Tether.

Partnership for Regulatory Technology

According to Wayne Huang, CEO of XREX Group, the partnership plays a crucial role in aiding law enforcement and the firm's expansion into RegTech products to combat illegal stablecoin use.

"Tether and XREX have collaborated successfully to help law enforcement agencies identify, arrest, and sentence criminals," Huang noted. "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."

Talent Recruitment and Financial Inclusion

Winston Hsiao, XREX Group CRO, said the investment supported XREX's top talent recruitment. "This stablecoin-enabled financial inclusion movement will bring long-term and positive change to the existing global clearance and settlement systems,"

Hsiao stated. XREX has a strong track record of collaboration with law enforcement and established investors like the Taiwanese government and financial institutions.

"Tether's strategic investment in XREX Group signifies our unwavering commitment to fostering financial inclusion in emerging markets."

With this new phase of collaboration, XREX is set to make significant strides in financial inclusion and regulatory technology, impacting how cross-border payments are conducted in emerging markets.