Cross-border payments startup XREX has secured $18.75 million from Tether to enhance the use of USDT-based payments in emerging markets.

XREX, a cross-border crypto exchange platform established by Wayne Huang and Winston Hsiao, has raised nearly $19 million from Tether, the issuer of the USDT stablecoin. The funds will be used to expand stablecoin cross-border business-to-business (B2B) payments in emerging markets.

According to a recent announcement, the Taipei-headquartered firm plans to use the $18.75 million to facilitate compliant, USDT-based cross-border B2B payments in emerging markets. This initiative aims to revolutionize financial transactions by offering businesses greater ease, efficiency, and potentially lower costs. Under the agreement, XREX will also collaborate with the Unitas Foundation to launch XAU1, a stablecoin backed by Tether Gold (XAUt), providing 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 has a diverse range of investors, including the Taiwanese Government National Development Fund, CDIB Capital Group, and SBI Holdings, among others. This investment follows XREX Singapore’s recent acquisition of a license to offer services in the region from the Monetary Authority of Singapore.

For Tether, this investment is part of several recent initiatives to expand its 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.

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