Tether's Blockchain Rail for Latin American Institutions Takes Shape

Tether, the issuer of the world's largest stablecoin USDT, has deepened its commitment to Latin America by investing in Parfin, a regional crypto infrastructure firm, to boost institutional adoption of its token. The partnership, announced in late November 2025, aims to expand blockchain-based settlement tools and tokenization services for financial institutions across the region, positioning USDT as a core asset for cross-border payments, real-world asset (RWA) tokenization, and credit markets according to a report.

The investment aligns with Tether's broader strategy to strengthen its presence in emerging markets, where stablecoins have become critical for hedging against inflation and facilitating low-cost transactions. Latin America, with its fragmented banking systems and volatile currencies, has seen nearly $1.5 trillion in crypto transactions from July 2022 to June 2025, according to Chainalysis. Brazil and Argentina, the region's two largest economies, account for over 60% of this activity, driven by demand for stablecoins as a store of value and medium of exchange.

Parfin, a London- and Rio de Janeiro-based platform, provides custody, tokenization, and settlement solutions tailored for institutions. Its services are designed to bridge traditional finance and blockchain, enabling banks and corporations to tokenize assets and streamline operations on distributed ledger technology. The firm has already secured regulatory recognition in Argentina and operates in Brazil since 2020 according to Seeking Alpha. Tether's investment will accelerate Parfin's expansion, particularly in developing on-chain infrastructure for institutional-grade applications such as trade finance and commercial invoicing according to Cointelegraph.

"This investment reflects our belief" said Tether CEO Paolo Ardoino, emphasizing the region's potential to drive real-world digital asset adoption. The partnership also signals Tether's shift from retail-focused stablecoin usage to institutional markets, where it seeks to establish USDT as a settlement rail for high-value transactions.

Contextually, Latin America's digital infrastructure is rapidly evolving. The managed services market in the region is projected to grow at a 5.65% CAGR, reaching $33.4 billion by 2035, driven by cloud adoption and cybersecurity demands. Meanwhile, AI-ready GPU infrastructure is expanding via partnerships like EdgeUno and AtlasCloud, which aim to localize high-performance computing. These developments underscore a broader trend of technological modernization, creating fertile ground for blockchain adoption.

Tether's move follows recent investments in Bitcoin-backed lending platform Ledn and German-based Nuera, signaling a cross-sector approach. With Parfin, the stablecoin giant is targeting institutional pain points in Latin America's financial ecosystem, where stablecoins already account for 39% of crypto purchases on platforms like Mexico's Bitso.