Taiwan's cryptocurrency industry receives exciting news! Leading digital asset company Tether announced a significant investment of $18.75 million USD, approximately 600 million NTD, in XREX Group. Previously, XREX had obtained a digital payment license in Singapore, significantly aiding its cross-border compliance business.
Tether states that the partnership will accelerate the adoption of Tether's USDT, the largest market-cap stablecoin, in emerging markets and promote innovation in regulatory technology (RegTech).
Tether CEO Paolo Ardoino stated:
"Tether's strategic investment in XREX Group demonstrates our unwavering commitment to promoting inclusive finance in emerging markets. Together with XREX, we will lead more groundbreaking innovations, including a unique unit currency issued by the Unitas Foundation, and make cross-border payments based on USDT more widespread, setting a new benchmark for financial inclusion and transaction efficiency in emerging markets."
Beyond USDT Cooperation, Introducing Gold Token According to sources, the new round of investment from Tether will be primarily used for two major business developments at XREX. Firstly, in collaboration with the Unitas Foundation, they will issue the XAU1 token. XAU1 is a tokenized gold that is over-reserved by Tether Gold (symbol XAUt) and pegged to the US dollar. It is estimated that XAU1 will be integrated into XREX's payment system, including cross-border payment features like the digital check BitCheck.
Secondly, Tether and XREX will collaborate to promote RegTech, enhancing the detection of crimes involving stablecoins and preventing abuse. XREX will incorporate RegTech into its main product lines and is likely to soon release products related to blockchain crime prevention. Currently, they have provided law enforcement agencies in Taiwan with a free trial; officers need only input a wallet address into the Line ChatBot dialogue box to display information such as the wallet's origin, whether it belongs to a customer of a Taiwanese exchange, and the fund's safety coefficient.
XREX co-founder and Group CEO Wayne Huang commented on the related business:
"Tether and XREX have previously collaborated to help law enforcement identify, arrest, and punish criminals. These successful experiences will extend to the development of RegTech products under Tether's strong support and investment, further solidifying XREX Group's position as a responsible financial institution."
Review of XREX Fundraising Data Looking back at its history, XREX has a renowned lineup of investors, including the National Development Fund, China Development Financial Holding Corporation (TWSE: 2883), SBI Investment (TYO: 8473), E. Sun Venture Capital (TWSE: 2884), ThreeD Capital (CSE: IDK), AppWorks, Wanfeng Capital, and New Economy Ventures. Now, Tether, the global leading digital asset company and the issuer of the stablecoin with the largest market cap, USDT, has joined as a strong partner for XREX's future product portfolio.
In terms of fundraising amounts, XREX, founded in 2018, raised $7 million in its seed round and $17 million in its Pre-A-1 Round. Tether's investment falls in the Pre-A-2 Round, bringing in $18.75 million, meaning XREX has raised over $42 million before entering the Series A round. This demonstrates the strong fundraising ability of the Taiwanese team and highlights the potential of blockchain finance to attract international cutting-edge institutions and enterprises.
XREX co-founder and Chief Revenue Officer Winston Hsiao expressed his thoughts on Tether's investment:
"We appreciate the support from Tether and our existing investors in this premium capital increase, which also includes issuing common shares to team members to attract top talent to join XREX. This financial inclusion movement, driven by stablecoins, will bring long-term and positive changes to the existing international clearing and settlement systems."
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