Tether, the digital asset company known for the USDT stablecoin, has made a significant investment of $18.75 million in XREX Group and introduced a new stablecoin, XAU1.
The partnership between Tether and XREX Group is aimed at enhancing cross-border business-to-business (B2B) payments and driving innovation in the digital asset industry and regulatory technology.
Paolo Ardonio, the CEO of Tether, shared his thoughts on the collaboration, emphasizing its potential impact on cross-border payments and the digital asset landscape.
Through Tether’s investment, XREX Group will be able to facilitate Tether (USDT)-backed cross-border B2B payments while ensuring compliance with regulations. This development is expected to streamline transactions across borders, offering businesses increased efficiency and potentially reduced costs.
In addition to the investment, XREX Group will be launching XAU1 in partnership with the Unitas Foundation. XAU1 is a stablecoin pegged to the United States dollar and backed by Tether gold (XAUt), providing a stable alternative and a hedge against inflation.
Wayne Huang, the CEO of XREX Group, highlighted the significance of XAU1, emphasizing its potential benefits for users seeking stability in their digital assets.
Despite the apparent stability of stablecoins, market dynamics and fluctuations can expose vulnerabilities in their value. With the impending Markets in Crypto-Assets Regulation (MiCA) rules, exchanges like Binance are preparing to transition European users from unauthorized stablecoins to regulated alternatives.
The need for clear regulatory guidelines for stablecoins is crucial for the future of the industry. However, the process of determining which stablecoins meet MiCA requirements remains uncertain. Binance’s cautious approach, such as implementing a “sell-only” strategy for unauthorized stablecoins, reflects the ongoing regulatory changes in the industry.
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