Tether, company that created USDT, launches new stablecoin
2 min readTether, a well-known digital asset company responsible for the USDT stablecoin, announced a strategic investment of 18.75 million USD in the XREX Group. Additionally, it announced the launch of a new stablecoin called XAU1.
In short, according to the company’s statement, this partnership aims to improve business-to-business (B2B) cross-border payments and promote innovations in the digital asset industry and regulatory technology.
Paolo Ardoino, CEO of Tether, highlighted the importance of this collaboration, stating that it will lead several innovative initiatives. Among them is the launch of the new stablecoin XAU1, developed by the Unitas Foundation, and the improvement in the efficiency and accessibility of cross-border payments in the region, using USDT.
Tether’s partnership with XREX promises to reduce international transaction costs
Tether has made a strategic investment in XREX Group, which will enable XREX to facilitate B2B cross-border payments using the Tether cryptocurrency, always in compliance with current regulations. This development is promising for offering companies more efficiency and reduced costs in international transactions.
Paolo Ardoino, expressing the importance of this collaboration, stated that Tether’s investment in XREX Group reinforces the company’s commitment to fostering financial inclusion in emerging markets.
In addition to a contribution of 18.75 million USD, XREX, in collaboration with the Unitas Foundation, will launch XAU1. This will be a gold-backed stablecoin pegged to the US dollar. This new cryptocurrency promises to offer stability and protection against inflation, as announced in a press release.
Wayne Huang, CEO of XREX Group, highlighted the relevance of this new offering. He highlights that Tether’s support and investment are crucial to the expansion and refinement of XREX Group as a responsible financial institution.
New European MiCA rules
Despite the proposed design and values, market dynamics, manipulations and fluctuations have exposed stablecoins to vulnerabilities that affect their stability. With the implementation of the new Markets in Crypto-Assets Regulation (MiCA) rules approaching, trading platforms like Binance are organizing to migrate European users from unauthorized stablecoins to others that are regulated.
The need for clear regulation for stablecoins is recognized as essential for the future of the sector. However, there is still uncertainty regarding determining which stablecoins meet the requirements established by MiCA.
In this context, Binance’s strategy of only allowing the sale of unauthorized stablecoins reflects a cautious stance while the regulatory review continues.
