Tether, Developer of USDT, Invested in State-Sponsored Cryptocurrency Initiative

Tether, one of the largest cryptocurrency companies, invested in an Asian cryptocurrency startup.

According to the statement made today, Tether made a strategic investment worth $ 18.75 million in XREX Group, a state-backed cryptocurrency initiative in Taiwan.

XREX's investors include the Taiwanese government's National Development Fund, as well as CDIB Capital Group, SBI Holdings, E.Sun Financial Holding, ThreeD Capital, AppWorks, BlackMarble and New Economy Ventures.

Will focus on emerging markets

XREX Group will use the funding it received from Tether to facilitate B2B cross-border transactions in USDT in developing countries.

XREX will also issue a USD-pegged stablecoin called XAU1 based on Tether Gold reserves. It was stated that this would be an alternative for customers to protect themselves from inflation.

“Tether's strategic investment in XREX Group represents our unwavering commitment to increasing financial inclusion in emerging markets,” said Tether CEO Paolo Ardoino.

XREX serves as a registered virtual asset service provider (VASP) under the Financial Supervisory Commission in Taiwan. The company's arm in Singapore recently received a license from the central bank.

Tether CEO Ardoino expressed his concerns about upcoming stablecoin regulations in Europe.