Tether, the leading digital asset firm responsible for the USDT stablecoin, has made a significant move by investing $18.75 million in XREX Group and introducing a brand new stablecoin called XAU1.
The collaboration between Tether and XREX Group is aimed at enhancing cross-border business-to-business (B2B) payments and revolutionizing the digital asset industry with a focus on regulatory technology. Paolo Ardoino, the CEO of Tether, shared his thoughts on the partnership and its potential impact.
Through this investment, XREX Group will be able to facilitate Tether (USDT)-based cross-border B2B payments in a compliant manner. This development is expected to streamline transactions across borders, offering businesses increased efficiency and potentially reduced costs. Ardoino highlighted the significance of this partnership in driving innovation in the industry.
In addition to the investment, XREX Group will also launch XAU1 in collaboration 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 protection against inflation. Wayne Huang, the CEO of XREX Group, emphasized the importance of this new offering and the benefits it will bring to users.
Despite the stability design of stablecoins, market dynamics and fluctuations can expose vulnerabilities. In anticipation of the 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 regulatory clarity in the stablecoin space is evident, but the criteria for meeting MiCA requirements remains uncertain.
Binance’s cautious approach, such as implementing a “sell-only” strategy for unauthorized stablecoins, reflects the ongoing regulatory changes. As the industry evolves, stablecoin stability and compliance will continue to be key areas of focus.
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