Tether Invests in XREX Group and Launches New Stablecoin XAU1
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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.
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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.