Tether Invests $18.75 Million in Taiwanese Startup XREX to Boost Emerging Market Payments

Tether, the leading stablecoin issuer, has made a significant investment of $18.75 million in XREX, a Taiwanese startup aimed at facilitating cross-border payments for SMEs in emerging markets. This move underscores Tether’s commitment to advancing financial inclusion outside of the mainstream financial system, where it has faced regulatory challenges, notably its exclusion from U.S. markets and an outright ban in New York.
XREX distinguishes itself by embracing regulatory compliance, having acquired several key licenses in Singapore, Taiwan, the U.S., and Canada. This proactive stance contrasts with Tether’s offshore operations and restrictions on U.S. users. A notable element of XREX’s work is its role in developing the Unitas stablecoin protocol, designed to support emerging market currencies.
Paolo Ardoino, CEO of Tether, emphasized the investment as a step towards enhancing financial inclusion in these markets. XREX has already attracted attention from significant investors, including SBI Holdings and the Taiwanese Government National Development Fund.
XREX’s primary service, BitCheck, offers a crypto-based trade escrow service, presenting a more cost-effective alternative to traditional services like Escrow.com by eliminating fees for transactions below $5,000.
Amidst criticism of being a conduit for illegal activities, Tether has been eager to demonstrate its cooperation with law enforcement and regulatory compliance. This partnership with XREX, particularly in the development of RegTech solutions, is part of Tether’s efforts to shed its negative image.
One of the most innovative aspects of this collaboration is the development of gold-backed stablecoins through the Unitas Protocol, leveraging Tether’s gold token. This initiative represents a new approach to creating stablecoins for emerging market currencies, promising a more stable and reliable financial tool for these economies.