Tether Backs EFY to Scale Stablecoin Payments LATAM

News Tether invests in stablecoin payments across 17 countries

Tether has funded Latin American fintech EFY Finance in its seed round to expand institutional access to USDT and USAT stablecoin payments across 17 countries. The move aims to accelerate cross-border settlement, on‑ and off‑ramp services, and custody capabilities for businesses and financial institutions across the region.

Overview: What Tether’s Investment Means

Tether confirmed the seed investment on October 13, 2026, saying the capital will support EFY Finance’s payment infrastructure, digital asset custody and integrations with local banking systems. Neither Tether nor EFY disclosed the size of the investment, EFY’s valuation, or the total funds raised in the seed round.

The partnership focuses on institutional stablecoin services using USDT, Tether’s longstanding dollar‑pegged token, and USAT, a U.S.‑focused stablecoin issued by Anchorage Digital Bank with Tether’s support. EFY already serves more than 25,000 active individual and business accounts and offers settlement into local bank accounts in 17 countries across Latin America.

Key takeaways

- Tether invested in EFY Finance’s seed round to broaden institutional stablecoin services across Latin America. - EFY’s settlement network reaches local accounts in 17 countries and reports over 25,000 active accounts. - EFY provides stablecoin payments, custody, wallets, cards, OTC trading and currency conversion services. - Financial terms, investor list and timetable for new products were not disclosed.

EFY Finance: Services and Market Reach

EFY Finance operates as a payments and custody infrastructure provider that bridges dollar‑pegged stablecoins and traditional banking rails. The company enables businesses and financial institutions to receive, convert and settle funds through familiar local networks while offering custody and wallet services for digital assets.

Product suite

EFY’s platform supports: - Stablecoin settlement using USDT and USAT. - Conversion across 12+ fiat currencies and multiple payment corridors. - Digital wallets, payment cards and corporate accounts. - Over‑the‑counter (OTC) trading and infrastructure for converting fiat into stablecoins and vice versa. - Institutional custody services governed by regulatory frameworks in markets where EFY operates.

Geographic footprint

According to Tether, EFY reaches local bank accounts in 17 countries, with established operations in Bolivia, Colombia, Mexico, El Salvador, Panama and Ecuador. EFY holds a Digital Asset Service Provider license in El Salvador and plans to scale institutional services in its existing markets while exploring new corridors.

Why Tether Invested: Strategic Motives

Tether framed the decision around EFY’s customer relationships, banking integrations and regulatory arrangements. For Tether, expanding stablecoin rails at an institutional level supports broader adoption of dollar‑denominated digital assets for treasury, cross‑border payments and corporate liquidity management in regions that face inflation and capital controls.

USDT and USAT: Two stablecoins, different contexts

USDT is Tether’s flagship dollar‑pegged stablecoin, widely used in global crypto markets. USAT is a bank‑issued U.S.‑focused stablecoin issued by Anchorage Digital Bank, N.A., supported by Tether. Tether’s public notice emphasized that USAT is not legal tender, is not guaranteed by the U.S. government and is not FDIC‑insured.

Regulatory and banking integrations

EFY’s ability to interface with local banking systems and maintain regulatory compliance was a core reason Tether cited for backing the company. These integrations enable customers to settle stablecoin proceeds directly into local accounts and to access conversion services that map digital assets onto traditional finance rails.

Licensing and compliance

EFY’s Digital Asset Service Provider license in El Salvador and existing banking relationships give it a regulatory foothold in key markets. Tether highlighted these attributes as crucial for scaling institutional products while managing compliance risks associated with fiat on‑ and off‑ramps.

Market context: Latin America’s strong crypto demand

The investment comes amid sustained crypto adoption in Latin America, where stablecoins have emerged as a dominant vehicle for accessing U.S. dollar exposure and facilitating cross‑border commerce.

Blockchain analytics firm Chainalysis reported nearly USD 1.5 trillion in cryptocurrency transaction volume across Latin America between July 2022 and June 2025. Chainalysis’ regional breakdown showed Brazil with USD 318.8 billion in received crypto value, Argentina USD 93.9 billion, Mexico USD 71.2 billion, Venezuela USD 44.6 billion and Colombia USD 44.2 billion. Stablecoins accounted for over half of exchange purchases involving the Colombian peso, Argentine peso and Brazilian real in a recent 12‑month window.

Local exchange dynamics

Independent exchange data, such as Bitso’s 2025 adoption report, has also shown strong demand for dollar‑backed tokens. Bitso reported that stablecoins represented roughly 40% of purchases on its platform, compared with Bitcoin at 18%—a marker of stablecoins’ role as a preferred store of value and medium of exchange in volatile fiat environments.

Tether’s broader institutional strategy

This EFY investment aligns with Tether’s broader push to build business payment rails and corporate treasury solutions using stablecoins. Earlier in 2026, Tether participated in institutional fintech deals including a reported USD 20 million investment in Argentine neobank Ualá. The company has also supported payments pilots and corporate proofs of concept that demonstrate faster settlement times and lower friction than legacy bank transfers.

Notable pilots and integrations

- Hyundai Motor’s U.S. and Mexican operations completed a USDT pilot in July 2026, transferring USD 20,000 over the Avalanche blockchain and settling the transaction in approximately seven minutes. That pilot involved tokenizing USD to USDT, moving the tokens on‑chain and reconverting them to fiat on receipt. - Anchorage Digital has announced interoperability arrangements (including LayerZero integration) to enable bank‑issued stablecoins such as USAT to move across multiple blockchains, supporting broader bank‑grade stablecoin utility.

What remains undisclosed and the open questions

Tether and EFY did not release details on several critical items: investment amount, EFY’s post‑money valuation, names of other seed investors, projected transaction volumes, revenue expectations or target launch dates for new institutional products.

Outstanding areas to watch

- Which blockchain networks EFY will use for new payment products and corridors. - Timelines for rolling out institutional custody, card issuance and bank settlement features. - Regulatory approvals required in additional countries and how those will affect rollout pace. - Measurable KPIs such as monthly settlement volume, active institutional customers and average transaction sizes.

Outlook: Why this matters for crypto payments in LATAM

By financing EFY Finance, Tether is betting on a model that converts stablecoins from retail trading instruments into enterprise payment rails. If EFY succeeds in extending regulated on‑ramps, custody and local settlement to more banks and corporates, Latin American businesses could benefit from faster cross‑border settlement, reduced foreign‑exchange friction and more direct access to dollar‑denominated liquidity.

For regulators and banks, the deal underscores the need for clear frameworks that accommodate bank integrations, custody standards and compliance for stablecoin flows. For enterprises and payment providers, the EFY‑Tether tie‑up signals continued momentum behind real‑world stablecoin use cases—especially cross‑border treasury and payments in dollarized economies.

EFY Finance said it will continue developing connections between digital dollar payments, bank accounts and local settlement networks, with CEO Andrés Tobón emphasizing institutional access to USDT and USAT as a priority alongside the company’s existing custody, wallets, cards and currency conversion services.

The investment marks another chapter in stablecoins’ maturation as instruments for enterprise payments and regional dollarization strategies. Market participants should monitor product announcements, regulatory updates and adoption metrics as EFY scales its infrastructure across Latin America.