• Tether invests in Parfin to expand USDT for institutional use in LATAM.

• Parfin, founded in 2019, provides custody, tokenization, and transaction infrastructure for digital assets.

• Latin America recorded nearly $1.5 trillion in crypto transactions from July 2022 to June 2025, per Chainalysis data.

Tether’s strategic investment in Parfin boosts USDT’s role in Latin America’s crypto ecosystem, enabling secure onchain settlements and stablecoin growth amid rising institutional demand.

What is Tether’s Investment in Parfin?

Tether’s investment in Parfin is a targeted move to integrate USDT more deeply into Latin America’s institutional financial landscape. The London- and Rio de Janeiro-based platform will use the funds to advance onchain settlement capabilities and fortify stablecoin systems already facilitating institutional crypto activities in the region. This aligns with Tether’s vision of positioning USDT as a reliable rail for high-value transactions like cross-border payments and real-world asset tokenization.

The investment, announced recently, highlights Tether’s commitment to emerging markets where blockchain solutions address economic challenges. Parfin’s established presence in Brazil since 2020 and its recent registration as a virtual asset service provider in Argentina positions it ideally for this expansion. Tether CEO Paolo Ardoino emphasized Latin America’s potential as a global leader in blockchain innovations through this partnership.

The investment will help Parfin expand its onchain settlement tools and strengthen stablecoin infrastructure that is already driving institutional crypto use in LATAM.

Tether has invested in Parfin, a London- and Rio de Janeiro-based digital asset platform, to push USDT deeper into Latin America’s institutional market and expand onchain settlement across the region.

According to Tether, the investment underscores its push to position USDt (USDT) as an institutional settlement rail for high-value activities, including cross-border payments, real-world asset (RWA) tokenization, and credit markets tied to trade finance, commercial invoices and card receivables.

Founded in 2019, Parfin builds infrastructure for institutions to custody, tokenize and transact digital assets. In October, the company secured official registration in Argentina as a virtual asset service provider and was recognized by the country’s financial regulator. It has been operating in Brazil since 2020.

Tether CEO Paolo Ardoino said the investment reflects the company’s “belief in Latin America as one of the global powerhouses for blockchain innovations.”

Tether’s USDT is the largest stablecoin in the world, with a market cap of about $183.73 billion, according to DefiLlama data. The total market capitalization of all stablecoins is currently around $303.2 billion.

Tether’s investment, the size of which was not disclosed, comes a few days after it invested in Ledn, a Bitcoin-backed lending platform.

Stablecoin market cap. Source: Defillama

How is Crypto Adoption Rising in Latin America?

Latin America has solidified its status as a crypto powerhouse, with Chainalysis reporting nearly $1.5 trillion in cryptocurrency transactions from July 2022 to June 2025. Brazil dominates with $318.8 billion in inflows, accounting for almost one-third of regional activity, while Argentina trails with $93.9 billion, driven by economic instability and inflation hedges.

Stablecoins like USDT play a pivotal role in this growth, offering stability amid volatile local currencies. In Argentina, persistent high inflation has prompted a shift toward digital assets; in September 2024, the central bank expended over $1 billion defending the peso during a currency run. A March 2024 analysis from Mexico-based exchange Bitso revealed that USDT and USDC represented 39% of all crypto purchases on its platform, underscoring stablecoins’ emergence as a preferred store of value.

Beyond protection from inflation, crypto addresses banking deficiencies across the region. Users leverage stablecoins for everyday remittances, savings, and payments, bypassing costly traditional systems like SWIFT. As noted by the CEO of Bybit’s Latin American division in an October 2024 interview with Cointelegraph, “Crypto is actually changing the lives of people” by providing accessible financial tools in underserved areas.

Year-over-year growth in crypto transactions by country in Latin America. Source: Chainalysis

Frequently Asked Questions

What does Tether’s investment in Parfin mean for USDT in Latin America?

Tether’s investment enables Parfin to enhance onchain tools for USDT, facilitating institutional adoption in areas like payments and tokenization. This strengthens stablecoin infrastructure in LATAM, where economic factors drive crypto use, potentially increasing transaction efficiency and volume for high-value trades.

Why is Latin America a key region for stablecoin growth?

Latin America’s appeal for stablecoins stems from high inflation rates and limited banking access, making USDT a vital tool for savings and remittances. With $1.5 trillion in crypto activity from 2022 to 2025 per Chainalysis, the region offers untapped potential for blockchain-based financial solutions that promote stability and inclusion.

Key Takeaways

• Tether-Parfin Partnership: Bolsters USDT’s institutional footprint in LATAM through advanced settlement infrastructure.
• Regional Crypto Surge: Brazil and Argentina lead with over $412 billion in inflows, fueled by inflation protection needs.
• Stablecoin Dominance: USDT’s $183.73 billion market cap highlights its role in addressing real-world financial gaps.

Conclusion

Tether’s investment in Parfin marks a significant step in embedding USDT within Latin America’s evolving crypto landscape, where stablecoins and onchain settlements address pressing economic challenges. As institutional adoption grows, driven by innovations in RWA tokenization and cross-border efficiency, this partnership positions the region as a blockchain frontrunner. Financial professionals and institutions should monitor these developments for opportunities in emerging markets.