Tether Doubles Down on LatAm: USDT Giant Backs Top Regional Exchange

Tether—the controversial stablecoin powerhouse—just placed a big bet on Latin America’s crypto future. No dollar figures disclosed (because transparency isn’t their brand), but the move signals deeper plays into emerging markets.

Why it matters: While Wall Street hedgies argue about ETF flows, real adoption’s happening where inflation wrecks local currencies. Smart money follows the pain.

The punchline: Another ’strategic’ investment that conveniently boosts demand for USDT. How very... circular of them.

Key Insights:

• USDT issuer Tether makes a strategic investment in Latin American crypto exchange Orionx to boost stablecoin adoption and digital payments.
• Orionx seeks to enhance its technological capabilities and scale stablecoin-powered infrastructure.
• Stablecoin adoption grew at a rapid pace in Latin American countries such as Brazil and Argentina.

Digital asset giant Tether on Tuesday announced making a strategic investment in leading Latin American crypto exchange and financial infrastructure company Orionx. The move aims to advance financial inclusion and strengthen digital payments channels in the region.

Tether Invests in Latin American Exchange Orionx

The renowned USDT stablecoin issuer Tether revealed its latest investment in crypto exchange Orionx’s Series A funding round, as per a press release on June 3. Chile-based Orionx is also a financial infrastructure company specializing in cross-border payments.

Tether plans to leverage and boost USDT adoption in the Latin American region. The company has continued to advance digital payments across emerging markets. Tether CEO Paolo Ardoino stated:

Orionx Presence in Latin America

Orionx plans to boost regional operations, enhance its technological capabilities, and scale stablecoin-powered infrastructure for remittances, payment collection, and treasury services across Latin America.

The company has a presence across Chile, Peru, Colombia, and Mexico and helps integrate crypto into both B2B and retail systems.

Joel Vainstein, CEO of Orionx, said the strategic collaboration between Orionx and Tether will boost its B2B services. They expect a rise in the number of companies seeking faster and more cost-efficient solutions for payments and treasury management.

The company’s “Remittances as a Service” platform enables businesses to offer customers near-instant, low-cost cross-border payments. Also, it supports seamless transaction processing, local fiat on and off-ramps, and simplified onboarding, as per the press release.

Tether Seeks to Boost USDT Adoption

The currency devaluation, rising inflation, and growing public debt in some Latin American countries have led retail and institutional users to seek stability in stablecoins.

According to Chainalysis, LATAM received almost $415 billion in crypto from July 2023 to June 2024. Notably, stablecoins recorded a majority of indirect flows from local to global exchanges in countries like Brazil and Argentina.

Despite this progress in digital adoption, LATAM has the world’s second-highest proportion of unbanked adults. Tether strongly believes stablecoins are a major alternative and help fix the gaps in financial inclusion.

Circle’s USDC and Tether’s USDT stablecoins have emerged as a store of value in Latin America. The adoption continues to surge as the crypto industry grows due to an increase in demand.

The collaboration between Tether and Orionx reflects a shared mission to empower individuals and businesses with reliable alternatives to traditional banking systems. As more and more people use stablecoins for financial interactions in daily life, Tether remains committed to leading the global charge for inclusive financial and technological innovations.

At the time of writing, USDT market cap was over $153.40 billion. Also, the trading volume was $69.79 billion over the last 24 hours.