Tether Invests in Parfin to Boost Institutional Crypto in LATAM

Tether Makes Strategic Parfin Investment to Dominate Latin American Crypto Infrastructure

Tether, the world’s largest stablecoin issuer with $183.73 billion in market capitalization, has announced a strategic investment in Parfin, a London and Rio de Janeiro-based fintech specializing in digital asset custody and institutional settlement. The move signals Tether’s deepening commitment to positioning itself at the center of Latin America’s emerging blockchain financial ecosystem.

While the investment amount remains undisclosed, the partnership carries significant implications for how blockchain infrastructure integrates with traditional finance across one of the globe’s most active cryptocurrency regions. Latin America has accumulated nearly $1.5 trillion in cryptocurrency transaction volumes between 2022 and 2025, with institutional entities increasingly driving activity as regulatory frameworks mature.​

Parfin’s Role as Infrastructure Backbone

Founded in 2019, Parfin has established itself as a critical infrastructure provider for financial institutions navigating the intersection of traditional and digital asset operations. The company offers comprehensive solutions including custody tools, tokenization platforms, and trading systems designed specifically for regulated financial institutions operating in Latin America’s complex regulatory landscape.​

At the core of Parfin’s offering is Rayls, an EVM-compatible permissioned blockchain that enables private, compliant on-chain workflows. Unlike public blockchains, Rayls provides institutions with controlled environments for secure settlement processes, allowing enterprises to experiment with digital assets while minimizing exposure to open network risks.​

“Parfin has established itself as a leader in developing the Parfin Platform and Rayls to securely and compliantly transition the global financial system onto the blockchain,” said Marcos Viriato, CEO of Parfin. “Tether’s investment strengthens our resolve to accelerate tokenization and integrate USDT into institutional frameworks.”​

Strategic Focus on Three Key Areas

The partnership targets global payments using USDT as the primary settlement medium, real-world asset tokenization for increased liquidity, and yield-generating credit markets including trade finance and corporate bonds. Tether positions USDT not as a speculative instrument but as a practical settlement rail for high-value institutional operations.​

The investment particularly focuses on cross-border payments, addressing a persistent challenge in Latin America where remittance flows remain economically significant. Stablecoins have demonstrated tangible value in this space, supporting small businesses requiring fast settlement and simple access to dollar-linked value.​

Tether’s Expanding Regional Footprint

The Parfin investment represents one component of Tether’s carefully orchestrated Latin American expansion strategy. The company established a dedicated investment arm regulated in El Salvador to oversee regional initiatives, demonstrating long-term commitment to the region.​

Earlier in 2025, Tether led a $10 million funding round for Mansa, a fintech specializing in stablecoin-based cross-border payments. Mansa’s clients reported a 30% increase in transaction volumes and 10% revenue boost after partnering with the platform.​

Additionally, Tether invested in Orionx, a Chilean cryptocurrency exchange operating across Peru, Colombia, and Mexico, closing the company’s Series A funding round. Orionx focuses on stablecoin-based payment systems, remittances, and low-cost transfers across the broader region.​

Financial Strength and Future Direction

Tether’s capacity to pursue aggressive regional expansion rests on exceptional financial performance. The company reported $10 billion in profit year-to-date, with U.S. Treasury holdings reaching $135 billion—making Tether one of the world’s largest Treasury bill buyers.​

However, Tether faces evolving regulatory scrutiny. In October 2024, The Wall Street Journal reported the company became the target of a federal criminal investigation for possible violations of sanctions and anti-money-laundering rules, though no charges have been filed.​

Looking ahead, Tether announced plans to issue USAT, a U.S.-only stablecoin, to strengthen compliance with emerging American regulations including the GENIUS Act framework.​

_{Sources: Official statements from Tether and Parfin leadership and FinTech Weekly Magazine and Yahoo Finance.}