Tether announces strategic investment and launch of XAU1 stablecoin
Tether, the digital asset company behind the USDT stablecoin, has announced an $18.75 million strategic investment in XREX Group and the launch of a new stablecoin, XAU1.
According to the company's press release, the collaboration aims to improve cross-border business-to-business (B2B) payments and create a digital asset industry and “control technology.”
Tether CEO Paolo Ardonio commented on the announcement.
“Our partnership with XREX will lead to a number of ground-breaking initiatives, including the launch of a new unified stablecoin unique to the Unitas Foundation and the facilitation of USDT-based cross-border payments,” he said.
Related: Tether Invests $150M in Jihan Wu's Crypto Miner BitDeer
Cross-border payments
Tether's investment in XREX Group enables XREX to facilitate regulatory-compliant, Tether (USDT)-based cross-border B2B payments.
The development promises to offer businesses “efficiency and lower costs” when trading across borders.
Arduino explained the importance of the partnership:
“Teter's strategic investment in XREX Group demonstrates our continued commitment to advancing financial inclusion in emerging markets.”
Related: ‘Bearing Stables' Are Not Money or Stable Coins: Agora Van Eck
Launch of the XAU1 stablecoin
In addition to the $18.75 million investment, XREX will launch XAU1 in partnership with the Unitas Foundation.
XAU1 is the United States Dollar Page Unified stable coin that is stacked above Tether Gold (XAUt), which, according to the press release, is a stable alternative and protects against inflation.
XREX Group CEO Wayne Huang emphasized the importance of the gift:
“With Tether's strong support and investment, we are expanding this success into the RegTech product line, positioning XREX Group as a responsible financial institution.”
Related: Binance Prepares for MiCA Rules, Improves Stablecoin Strategy
How stable is a stable coin?
Despite their design and fixed values, market dynamics, manipulations and fluctuations present vulnerabilities to stable coins.
Exchanges such as Binance are preparing to move European users away from unlicensed stablecoins to regulated equivalents, as markets continue to fall under the new Crypto-Assets Regulation (MiCA) rules.
Stablecoin regulatory transparency is needed in the future, but determining which stablecoins will meet MiCA's regulatory requirements remains uncertain.
Binance's “sell-only” strategy for unlicensed stablecoins reflects this cautious approach while regulatory reform continues.
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