Cross-border payments startup XREX has raised $18.75 million from Tether to expand use cases for USDT-based payments in emerging markets.
XREX, a cross-border crypto exchange platform founded by Wayne Huang and Winston Hsiao, has raised nearly $19 million from Tether, the issuer of the USDT stablecoin, to double down on stablecoin cross-border business-to-business (B2B) payments in emerging markets.
According to a press release on Jun. 5, the Taipei-headquartered firm plans to use $18.75 million to facilitate “compliant, USDT-based cross-border B2B payments in emerging markets, revolutionizing financial transactions by offering businesses greater ease, efficiency, and potentially lower costs.” Under the agreement, XREX will also work together with the Unitas Foundation to launch XAU1, a stablecoin backed with Tether Gold (XAUt), to provide a “hedge against inflation.”
“Our collaboration with XREX will spearhead several groundbreaking initiatives, including the launch of a unique new unitized stablecoin by the Unitas Foundation and the facilitation of USDT-based cross-border payment, setting a new standard for financial accessibility and efficiency in the region.”
Tether CEO Paolo Ardoino
Founded in 2018, XREX boasts a wide range of investors, including the Taiwanese Government National Development Fund, CDIB Capital Group, and SBI Holdings among others. The investment comes after XREX Singapore recently obtained a license to offer services in the region from the Monetary Authority of Singapore.
For Tether, this investment is part of a series of recent initiatives to expand the firm’s international presence. In early May, Tether announced its entry into Eastern Europe with an investment in the Georgian payment service CityPay. Additionally, the stablecoin issuer signed a memorandum of understanding with RAK Digital Assets Oasis (RAK DAO) to launch several “strategic initiatives” aimed at promoting the adoption of Bitcoin technology and stablecoins in Ras Al Khaimah (RAK), the northernmost emirate in the UAE.
