Tether, the company behind the world’s largest stablecoin, USDT, has invested $20 million in Latin American fintech firm Ualá, adding another strategic investment to its growing portfolio outside the crypto industry.
The investment closes a $197 million funding round for Ualá, which values the company at $3.2 billion post-money.
Born in Argentina, Ualá has become one of the leading digital financial platforms in Latin America, providing payments, debit and credit cards, savings accounts, loans and investment products.
Today the company operates in Argentina, Mexico and Colombia, where it aims to bring financial services to people who have traditionally been underserved by the banking system.
Ualá eyes expansion with latest funding round
The new funding is expected to help Ualá continue its expansion across the region, which has seen a boom in demand for digital banking and fintech services in recent years.
The investment is part of Tether’s strategy to move beyond stable coins and back companies helping shape the future of digital finance.
While the company is best known for issuing USDT, the world’s largest dollar-pegged stablecoin, it has been increasingly investing in sectors such as artificial intelligence, bitcoin mining and energy and financial technology. Those investments have been fuelled by the massive profits Tether has made from managing the reserves backing its stablecoin.
Latin America emerges as a fintech and crypto hotspot
The Ualá deal also underscores the increasing significance of Latin America as a fintech and crypto market.
The rise of smartphone use, limited access to conventional banking and persistent inflation have driven the demand for digital financial products in the region at large. In countries like Argentina where the high inflation has eroded purchasing power, fintech apps and stablecoins have become more popular tools for managing money and protecting savings.
Neither company has said it plans to integrate cryptocurrencies into Ualá’s platform, but Tether’s investment boosts its presence in a region where digital currencies are already playing an increasing role in everyday finance.
The integration of Tether is another big investor for Ualá, in a context where the competition between fintech companies in Latin America is increasing. The $3.2 billion valuation also indicates that although startup funding has become more selective globally, investors remain bullish on the long-term growth prospects of digital financial services in the region.
The investment also fits into a broader trend of crypto companies expanding beyond their core business.
“Companies like Tether are deploying their capital into companies that support the wider digital economy, not just digital property. These investments help crypto firms diversify and build relationships across the financial services ecosystem.”
As the fintech and crypto lines blur more and more, partnerships like this will become more common. For Tether, the investment in Ualá provides exposure to one of the fastest growing digital finance markets in the world. The new funding gives Ualá more firepower to reach more users and offer more services across Latin America, where digital banking is continuing to gain momentum.
