Tether Announces Strategic Investment of $18.75 Million in Taiwan-based International Financial Institution XREX Group, with various business collaborations and the launch of new products.
Taiwan’s cryptocurrency industry receives exciting news as digital asset leader Tether announces a substantial investment of $18.75 million in XREX Group, equivalent to approximately NT$600 million. XREX recently obtained a digital payment license in Singapore, which greatly assists its cross-border compliance business. Tether states that the collaboration between the two parties will accelerate the application of USDT, Tether’s largest market capitalization stablecoin, in emerging markets, as well as contribute to regulatory technology (RegTech) innovation.
Paolo Ardoino, CEO of Tether, stated:
Not only will Tether collaborate with USDT, but it will also launch a gold token
According to insiders, XREX will mainly utilize the latest investment from Tether to develop two major businesses. Firstly, XREX will issue XAU1 tokens in collaboration with the Unitas Foundation. XAU1 is a gold tokenization backed by Tether Gold (XAUt) reserves in excess and pegged to the value of the US dollar. It is estimated that XAU1 will subsequently enter the XREX payment system, including cross-border payment functions such as digital check BitCheck.
Secondly, Tether and XREX will collaborate on promoting regulatory technology (RegTech), aiming to enhance the detection and prevention of crimes related to the US dollar stablecoin. XREX will incorporate RegTech into one of its main product lines and is likely to release blockchain crime prevention-related products in the near future. It is reported that these products are currently provided to law enforcement agencies in Taiwan for trial use. Investigators only need to enter the wallet address in the Line ChatBot dialogue box to display information such as the wallet source, whether it belongs to a customer of a Taiwanese exchange, and the security coefficient of the funds.
Huang Yao-Wen, Co-founder and CEO of XREX, commented on the related businesses:
XREX’s fundraising data
Looking back on the history, XREX has a lineup of well-known investors, including the National Development Fund of the Executive Yuan, China Development Financial Holding Corporation (TWSE: 2883), SBI Investment (TYO: 8473), Yuanta Venture Capital (TWSE: 2884), ThreeD Capital (CSE: IDK), AppWorks, Mega Capital, and New Economy Ventures. Now, the globally renowned digital asset company and market leader of stablecoins, Tether, has joined XREX, providing even stronger partnerships for XREX’s future product lineup.
In terms of funding, XREX, founded in 2018, raised $7 million in seed round, $17 million in Pre-A-1 round, and $18.75 million in the Tether Pre-A-2 round. This means that even before entering the Series A funding round, XREX has raised over $42 million, showcasing the strong fundraising capability of the Taiwanese team. It also demonstrates the potential of blockchain finance beyond a single region, attracting attention from international cutting-edge institutions and enterprises.
Xiao Hui-Zong, Co-founder and Group Revenue Officer of XREX, commented on Tether’s investment:
In May, Dynamic Zone reported on the complete process of XREX becoming the first crypto company in Taiwan to obtain a Major Payment Institution license (MPI) from Singapore. XREX also announced the upcoming launch of the XREX PAY payment platform, targeting emerging markets and countries. This platform will enable small and medium-sized enterprises and import/export businesses to utilize blockchain payment methods that are faster and more cost-effective than traditional financial institutions.
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