Tether Invests in XREX Group and Launches New Stablecoin XAU1

Tether recently invested $18.75 million in XREX Group and introduced a new stablecoin, XAU1, aiming to enhance cross-border business-to-business (B2B) payments and regulatory technology in the digital asset industry.

Paolo Ardonio, Tether’s CEO, highlighted the significance of the partnership, emphasizing their commitment to revolutionizing financial accessibility and efficiency in the region through initiatives like the Unitas Foundation’s unique stablecoin and USDT-based cross-border payments.

The collaboration enables XREX Group to facilitate regulatory-compliant, USDT-based cross-border B2B transactions, promising enhanced efficiency and potentially reduced costs for businesses transacting globally.

In addition to the investment, XREX will launch XAU1 in collaboration with the Unitas Foundation, offering a stable alternative over-reserved with Tether gold (XAUt) to hedge against inflation, as CEO Wayne Huang highlighted.

While stablecoins like USDT and XAU1 offer stability, market dynamics and regulatory uncertainties pose challenges. Exchanges, such as Binance, are preparing to transition European users to regulated stablecoins amid forthcoming regulations like the Markets in Crypto-Assets Regulation (MiCA).

Stablecoin regulatory clarity is crucial for the future, but uncertainty remains about which stablecoins will meet MiCA requirements. Binance’s cautious approach, adopting a “sell-only” strategy for unauthorized stablecoins, reflects the ongoing regulatory overhaul in the sector.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.