Tether, the company responsible for the USDT stablecoin, has just made a significant move by investing $18.75 million in XREX Group and introducing a new stablecoin called XAU1.
The primary goal of this partnership, as stated in Tether’s press release, is to enhance cross-border business-to-business (B2B) payments and bring innovation to the digital asset sector along with “regulatory technology.”
CEO of Tether, Paolo Ardoino, expressed his thoughts on the collaboration, emphasizing the potential benefits it could bring to the industry, especially in terms of cross-border payments using Tether (USDT).
With the investment in XREX Group, businesses can look forward to more efficient and cost-effective B2B transactions across borders, thanks to the regulatory-compliant infrastructure put in place.
In addition to the financial investment, XREX 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), offering stability and a hedge against inflation.
Wayne Huang, the CEO of XREX Group, underlined the significance of this new stablecoin, highlighting its potential benefits for users seeking a reliable and secure digital asset.
While stablecoins are designed to maintain a stable value, recent market dynamics have revealed vulnerabilities to stability due to manipulations and fluctuations. This has prompted exchanges like Binance to prepare for upcoming regulations, such as the Markets in Crypto-Assets Regulation (MiCA), which aim to ensure the stability and legality of stablecoins.
As the industry awaits regulatory clarity, exchanges are taking a cautious approach, transitioning users from unauthorized stablecoins to regulated alternatives. Binance’s decision to restrict trading to “sell-only” for unauthorized stablecoins reflects this need to comply with evolving regulations.
In the midst of these developments, it is essential for stablecoin issuers to adhere to regulatory requirements to ensure the future viability of their digital assets.