Bitcoin News Today: Tether Bridges Traditional Finance and Blockchain With Latin America Expansion

Tether, the issuer of the world's largest stablecoin, has deepened its commitment to Latin America by investing in Parfin, a regional crypto infrastructure firm, to accelerate institutional adoption of its USDT stablecoin. The partnership, announced in November 2025, aims to expand the use of USDT as a settlement asset for cross-border payments, real-world asset (RWA) tokenization, and institutional credit markets, leveraging Parfin's custody, trading, and blockchain-based settlement tools. Tether's CEO, Paolo Ardoino, emphasized the move aligns with the company's mission to bridge traditional finance and blockchain technology, enabling "global, unrestricted access to financial freedom".

The investment builds on Tether's broader strategy to cement USDT's role beyond its traditional use as a liquidity tool for crypto exchanges. With Latin America recording nearly $1.5 trillion in crypto transaction volume in 2025-driven largely by USDT-Tether sees the region as a critical market for scaling institutional blockchain adoption. Parfin, a key infrastructure provider, offers regulated solutions that integrate seamlessly with existing financial systems, allowing institutions to deploy tokenized assets while maintaining compliance and security. The firm's proprietary platform, Rayls, is designed to facilitate on-chain settlements at scale, further supporting Tether's vision for programmable and cost-effective financial infrastructure.

This move follows Tether's earlier investments in Bitcoin-backed lending platforms like Ledn, where it has allocated over $2.8 billion in BTC-originated loans since 2023. The stablecoin giant also reported a 70% surge in market capitalization for its tokenized gold product, Tether Gold (XAUT), to over $2.1 billion, reflecting growing demand for asset-backed stablecoins. Meanwhile, Tether's aggressive Bitcoin-buying strategy - purchasing the asset regardless of price - has reinforced its position as a "price-insensitive buyer," according to CEO Samson Mow.

The expansion into Latin America comes as regulatory scrutiny intensifies in the region. Brazil, for instance, is considering extending its financial transaction tax (IOF) to stablecoin-based cross-border payments, a move that could generate billions in revenue while addressing concerns about money laundering. The central bank's recent classification of stablecoins as forex operations has paved the way for such measures, with enforcement set to begin in February 2026. Tether's partnership with Parfin appears timed to navigate this evolving regulatory landscape, as the firm positions USDT as a compliant solution for institutional clients.

Tether's strategy also aligns with broader trends in the crypto-backed lending market, which is projected to grow nearly eightfold by 2033. By targeting Latin America - a region with underdeveloped traditional financial infrastructure - Tether aims to capture a significant share of the demand for liquidity solutions that avoid the need to sell digital assets.