Stablecoin

Polygon

Tether, the digital asset company behind the USDT stablecoin, announced a strategic investment of $18.75 million in XREX Group and the launch of a new stablecoin, XAU1.
According to the company’s press release, the collaboration aims to improve cross-border business-to-business (B2B) payments and innovate the digital asset industry and “regulatory technology.”
Paolo Ardonio, CEO of Tether commented on the announcement:
<blockquote data-ct-non-breakable="true">
 “Our collaboration with XREX will spearhead several ground-breaking initiatives, including the launch of a unique new unitized stablecoin by the Unitas Foundation and the facilitation of USDT-based cross-border payments, setting a new standard for financial accessibility and efficiency in the region.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/tether-150-million-bitdeer-jihan-wu">Tether invests $150M in Jihan Wu’s crypto mining firm Bitdeer</a>
<h2 data-ct-non-breakable="true" id="cross-border-payments">Cross-border payments</h2>
Tether’s investment in XREX Group will enable XREX to facilitate regulatory-compliant, Tether (<a href="https://cointelegraph.com/tether-price-index">USDT</a>)-based cross-border B2B payments.&nbsp;
The development promises to offer businesses “efficiency and potentially lower costs” when transacting across borders.
Ardoino expressed the significance of the partnership:
<blockquote data-ct-non-breakable="true">
 “Tether’s strategic investment in XREX Group signifies our unwavering commitment to fostering financial inclusion in the emerging markets”
</blockquote>
Related: <a href="https://cointelegraph.com/news/yield-bearing-stables-not-money-stablecoins-says-agora-ceo-van-eck">‘Yield-bearing stables’ are not money or stablecoins: Agora’s van Eck</a>
<h2 data-ct-non-breakable="true" id="launch-of-xau1-stablecoin">Launch of XAU1 stablecoin</h2>
In addition to the $18.75 million investment, XREX will launch XAU1 in collaboration with the Unitas Foundation.&nbsp;
XAU1 is a United States dollar-pegged unitized stablecoin over-reserved with Tether gold (XAUt), which, <a href="https://tether.io/news/tether-invests-18-75m-in-xrex-group-to-drive-financial-inclusion-in-emerging-markets/" target="_blank" rel="noopener nofollow">according</a> to the press release, will provide a stable alternative and hedge against inflation.&nbsp;
Wayne Huang, CEO of XREX Group, emphasized the importance of the offering, stating:
<blockquote data-ct-non-breakable="true">
 “With Tether’s strong support and investment, we’re expanding this success into a RegTech product line that further refines XREX Group as a responsible financial institution.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/binance-prepares-for-mica-stablecoin-regulations">Binance prepares for MiCA rules, updates stablecoin strategy</a>
<h2 data-ct-non-breakable="true" id="how-stable-are-stablecoins">How stable are stablecoins?</h2>
Despite their design and pegged values, market dynamics, manipulations and fluctuations reveal vulnerabilities to stablecoin stability.&nbsp;
In light of the upcoming Markets in Crypto-Assets Regulation (MiCA) rules, exchanges like <a href="https://cointelegraph.com/news/binance-prepares-for-mica-stablecoin-regulations">Binance are preparing to transition European users</a> from unauthorized stablecoins to regulated equivalents.
Stablecoin regulatory clarity is required for the future, but determining which stablecoins meet MiCA regulatory requirements remains uncertain.&nbsp;
Binance’s “sell-only” strategy for unauthorized stablecoins reflects this cautious approach while the regulation overhaul continues.
Magazine: <a href="https://cointelegraph.com/magazine/polygon-anurag-arjun-avail-ethereum-x-hall-of-flame/">Polygon never set out to beat Ethereum: Anurag Arjun, X Hall of Flame</a>

Tether announces strategic investment and launch of XAU1 stablecoin

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Cointelegraph

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