Tether announces strategic investment and launch of XAU1 stablecoin

Tether invests $18.75 million in XREX Group, launching the XAU1 stablecoin to improve cross-border B2B payments and regulatory technology.

Tether, the digital asset business behind the USDT stablecoin, has announced a $18.75 million strategic investment in XREX Group and the launch of XAU1, a new stablecoin.

According to the company’s news release, the alliance intends to increase cross-border B2B payments while innovating the digital asset market and “regulatory technology.”

The announcement was commented on by Paolo Ardonio, CEO of “Our collaboration with XREX will spearhead several ground-breaking initiatives, including the launch of a unique new unitized stablecoin by the Unitas Foundation and the facilitation of USDT-based cross-border payments, setting a new standard for financial accessibility and efficiency in the region.”

Cross-border payments

Tether’s investment in XREX Group will allow XREX to offer regulatory-compliant, Tether USDT$1.00-based cross-border B2B transactions. 

The initiative promises to provide firms with “efficiency and potentially lower costs” while conducting cross-border transactions.

Ardoino emphasized the importance of the partnership: “Tether’s strategic investment in XREX Group demonstrates our unwavering commitment to promoting financial inclusion in emerging markets.”

Launch of XAU1 stablecoin

In addition to the $18.75 million investment, XREX will launch XAU1 in partnership with the Unitas Foundation. 

XAU1 is a US dollar-pegged unitized stablecoin over-reserved with Tether gold (XAUt), which, according to the press release, will serve as a stable alternative and inflation hedge. 

The CEO of XREX Group, Wayne Huang, emphasized the significance of the service, noting, “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.”

How stable are stablecoins?

Regardless of their architecture and pegged values, market dynamics, manipulations, and swings expose risks in stablecoin stability. 

In light of the forthcoming Markets in Crypto-Assets Regulation (MiCA) legislation, exchanges such as Binance are preparing to move European users from unregulated stablecoins to regulated alternatives.

Stablecoin regulatory clarification is essential for the future, yet it is unclear which stablecoins meet MiCA regulatory criteria. Binance’s “sell-only” strategy for unauthorized stablecoins reflects this cautious stance as the regulatory change unfolds.

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