Tether has announced an investment in Parfin, a digital asset platform with operations in London and Rio de Janeiro. This strategic move aims to enhance the institutional adoption of USDT (Tether USDt) within Latin America and broaden onchain settlement capabilities across the region.
The investment highlights Tether's commitment to establishing USDt as a primary settlement rail for significant institutional activities. These activities include cross-border payments, the tokenization of real-world assets (RWAs), and the development of credit markets linked to trade finance, commercial invoices, and card receivables.
Parfin, established in 2019, specializes in building the necessary infrastructure for institutions to custody, tokenize, and transact digital assets. The company achieved a significant milestone in October by securing official registration in Argentina as a virtual asset service provider, gaining recognition from the country's financial regulator. Parfin has been actively operating in Brazil since 2020.
Paolo Ardoino, CEO of Tether, expressed the company's confidence in Latin America, stating that the investment reflects their "belief in Latin America as one of the global powerhouses for blockchain innovations."
Tether's USDT holds the position of the world's largest stablecoin, boasting a market capitalization of approximately $183.73 billion, according to data from DefiLlama. The total market capitalization for all stablecoins currently stands at around $303.2 billion.
This investment in Parfin, the financial details of which were not disclosed, follows a recent investment by Tether in Ledn, a platform focused on Bitcoin-backed lending.
The Growing Influence of Crypto in Latin America
Latin America has emerged as a significant global hub for cryptocurrency activity. A report from Chainalysis in October indicated that the region experienced nearly $1.5 trillion in crypto transactions between July 2022 and June 2025. Brazil led this trend with $318.8 billion in crypto inflows, accounting for nearly a third of all activity in Latin America, followed by Argentina with $93.9 billion.
A primary driver for the increased adoption of cryptocurrencies in Latin America is the pursuit of a hedge against inflation. Argentina, in particular, has grappled with persistent high inflation for years. In September, the country experienced a significant run on its peso, prompting its central bank to allocate over $1 billion to stabilize the currency.
Stablecoins have emerged as a viable solution to these economic challenges. A March report from Bitso, a Mexico-based crypto exchange, identified stablecoins as a crucial "store of value" for many individuals across Latin America. In 2024, USDT and Circle's USDC represented 39% of all crypto purchases made on the Bitso platform.
Additionally, Latin Americans are increasingly turning to cryptocurrencies to address shortcomings in the region's traditional banking systems. Stablecoins are being utilized for everyday payments, savings, and facilitating more cost-effective remittances that bypass the high fees associated with SWIFT.
As the CEO of Bybit's Latin American division remarked in October, "Crypto is actually changing the lives of people" in the region, underscoring the transformative impact of digital assets on the lives of its inhabitants.