Tether, the well-known digital asset startup behind the USDT stablecoin, has announced a strategic investment of 18.75 million USD in the XREX Group. It also announced the creation of a new stablecoin, XAU1.
In short, according to the company's announcement, the cooperation intends to boost business-to-business (B2B) cross-border payments while also promoting advances in the digital asset market and regulatory technologies.
Paolo Ardoino, CEO of Tether, emphasized the significance of this relationship, noting that it will spearhead various creative initiatives. Among these is the debut of the Unitas Foundation's new stablecoin XAU1, as well as an increase in the efficiency and accessibility of cross-border payments in the region via USDT.
Tether’s partnership with XREX promises to reduce international transaction costs
Tether has announced a strategic investment in XREX Group, allowing XREX to handle B2B cross-border payments using the Tether cryptocurrency while remaining in line with current rules. This technique has the potential to improve company efficiency and cut costs in international transactions.
Paolo Ardoino emphasized the significance of this relationship, stating that Tether's investment in XREX Group demonstrates the company's commitment to promoting financial inclusion in emerging markets.
In addition to an 18.75 million USD donation, XREX and the Unitas Foundation will launch XAU1. This will be a gold-backed stablecoin tied to the US dollar. According to a press statement, this new cryptocurrency will provide stability and inflation protection.
Wayne Huang, CEO of XREX Group, emphasized the importance of this new service. He emphasizes that Tether's support and investment are critical to the growth and development of XREX Group as a responsible financial institution.
Paolo Ardoino emphasized the significance of this relationship, stating that Tether's investment in XREX Group demonstrates the company's commitment to promoting financial inclusion in emerging markets.
In addition to an 18.75 million USD donation, XREX and the Unitas Foundation will launch XAU1. This will be a gold-backed stablecoin tied to the US dollar. According to a press statement, this new cryptocurrency will provide stability and inflation protection.
Wayne Huang, CEO of XREX Group, emphasized the importance of this new service. He emphasizes that Tether's support and investment are critical to the growth and development of XREX Group as a responsible financial institution.
New European MiCA rules
Regardless of the planned architecture and values, market dynamics, manipulations, and oscillations have exposed stablecoins to vulnerabilities that compromise their stability. With the implementation of the new Markets in Crypto-Assets Regulation (MiCA) laws nearing, trading platforms such as Binance are preparing to transition European users from unlawful stablecoins to regulated alternatives.
Stablecoins require clear regulation, which is considered as critical to the sector's growth. However, there is still ambiguity over which stablecoins fit MiCA's requirements.
In this context, Binance's policy of only allowing the sale of unlicensed stablecoins represents a cautious approach while the regulatory inquiry is ongoing.
Stablecoins require clear regulation, which is considered as critical to the sector's growth. However, there is still ambiguity over which stablecoins fit MiCA's requirements.
In this context, Binance's policy of only allowing the sale of unlicensed stablecoins represents a cautious approach while the regulatory inquiry is ongoing.
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