Tether bets on a $1.5 trillion market! Invest in Parfin to push USDT institutional settlement

Stablecoin giant Tether announces a strategic investment in Parfin, Latin America’s leading digital asset custody, tokenization, trading, and institutional management platform. This investment aims to accelerate the application of USDT in enterprise-level use cases and expand blockchain-based settlement infrastructure across the region. Chainalysis reports that cryptocurrency trading volume in Latin America has approached ### 1.5 trillion USD.

( Tether Strategically Invests in Parfin to Expand Institutional Applications

![Tether Strategic Investment in Parfin])https://img-cdn.gateio.im/webp-social/moments-87a9b3933a-6f17096f30-153d09-cd5cc0.webp###

This investment by Tether reflects its broader commitment to making USDT a core settlement and liquidity asset for high-value institutional applications. These scenarios include cross-border transactions, real-world asset (RWA) tokenization, and growth in yield-bearing credit markets (such as trade receivables, commercial receivables, and credit card receivables).

Parfin has become one of Latin America’s most influential digital asset infrastructure providers, offering secure, compliant, and scalable tools for financial institutions to manage digital assets. The company has been dedicated to building systems that meet strict regulatory standards while ensuring that technology can scale to meet the growing demand of digital financial transformation.

Tether CEO Paolo Ardoino stated, “At Tether, we believe in unrestricted access to financial freedom worldwide and real-world digital asset use cases. Strengthening the link between traditional finance and blockchain technology is crucial, and Parfin has demonstrated a strong commitment to this mission. This investment also reflects our confidence in Latin America as a global leader in blockchain innovation.”

Parfin CEO Marcos Viriato added that Tether’s support validates the company’s long-term vision. “Parfin is committed to building the Parfin platform and Rayls to securely, privately, and compliantly bring the global financial system onto the blockchain, and has become a pioneer in this field. Tether’s investment solidifies our mission to accelerate tokenization and integrate USDT into institutional solutions.”

The core of this partnership is to combine Tether’s global liquidity advantages with Parfin’s localized infrastructure capabilities. As institutions across Latin America increasingly explore blockchain-based financial rails, this collaboration will position USDT at the center of the region’s evolving digital financial architecture.

USDT Enters Cross-Border Payments and RWA Tokenization Markets

This investment’s most immediate application scenarios focus on three major areas. First is cross-border transactions, where Latin America has long been troubled by high costs and inefficiencies of traditional cross-border payments systems. USDT, as a stablecoin, can facilitate near-instant cross-border transfers with significantly lower transaction fees than traditional SWIFT systems. Parfin’s compliant infrastructure ensures these transactions meet regulatory requirements, providing banks and enterprises with a reliable alternative.

Second is real-world asset (RWA) tokenization. This is one of the hottest sectors in blockchain finance today, including tokenizing real estate, commodities, equities, bonds, and other traditional assets. USDT, as a settlement currency, provides liquidity and price stability for these tokenized assets. Parfin’s platform already has custody and trading infrastructure, and with Tether’s support, can rapidly expand into more asset classes.

Third is the yield-oriented credit market, including trade finance receivables, commercial receivables, and credit card receivables. These traditional financial instruments can be tokenized to improve liquidity and reduce intermediary costs. Using USDT as a settlement layer enables these tokenized credit products to be traded across broader markets, offering investors new sources of yield.

Three Major USDT Use Cases in Latin America

Cross-border payments: Low-cost, real-time settlement, replacing traditional SWIFT

RWA Tokenization: Onboarding assets like real estate and commodities, with USDT providing liquidity

Yield Credit Markets: Tokenizing trade finance and receivables, reducing intermediary costs

These scenarios are not just theoretical; they are already being implemented in some Latin American countries. For example, some banks in Brazil have begun testing stablecoins for cross-border payments, and Argentine companies are widely adopting USDT as a store of value in high-inflation environments. Through its investment in Parfin, Tether aims to integrate these fragmented applications into scalable institutional solutions.

Latin America’s $1.5 Trillion Cryptocurrency Market Rise

This investment comes at a time when Latin America’s crypto economy is booming. According to Chainalysis’s “2025 Cryptocurrency Geography Report,” the region’s crypto trading volume has approached ( 1.5 trillion USD, making it one of the world’s most dynamic digital asset markets. This figure ranks just after North America and Asia globally.

Institutional participation drives this growth, and regulatory developments are supporting banks and enterprises in adopting blockchain-based financial tools. Major economies like Brazil, Argentina, and Mexico are advancing crypto regulatory frameworks, clearing obstacles for compliant institutional applications. For example, Brazil’s Central Bank is developing its digital real (CBDC) and has explicitly supported stablecoin use in a regulated environment.

Latin America’s crypto adoption also has unique drivers. Many countries face currency instability, hyperinflation, and capital controls, making stablecoins like USDT ideal for storing value and conducting transactions. In Argentina, with inflation exceeding 100% annually, many citizens and businesses turn to USDT to protect wealth. In Venezuela, hyperinflation has rendered the national currency nearly useless, and USDT has become the de facto medium of exchange.

Additionally, Latin America’s remittance market is substantial. According to World Bank data, the region receives over ) 140 billion USD annually in cross-border remittances, mainly from immigrants working in the US and Europe. Traditional remittance channels are costly and slow, whereas USDT offers a lower-cost and faster alternative. Tether’s investment in Parfin is motivated by the enormous market potential.

USDT Market Cap Reaches $183.69 Billion, Consolidating Stablecoin Dominance

![USDT Dominates Stablecoins]https://img-cdn.gateio.im/webp-social/moments-87a9b3933a-e86341a09a-153d09-cd5cc0.webp

(Source: CoinMarketCap)

USDT’s market cap has reached 183.69 billion USD, making it the largest stablecoin to date and the third-largest crypto asset by market cap, after Bitcoin and Ethereum. This scale alone demonstrates USDT’s central role in the global crypto market. Over the past 24 hours, trading volume remains robust at 145.5 billion USD, growing over 23%, indicating ample market liquidity and sustained global demand for this stablecoin.

In the past 12 months, despite periodic fluctuations in Tether’s USDT price, it has consistently traded within a narrow range close to 1 USD. USDT’s price fluctuates between 0.9970 USD and 1.0014 USD, reflecting the liquidity-driven price stability typical of high-volume stablecoins. The current price is 0.9989 USD, a slight decrease of 0.19% year-over-year, but still within the historical stability range.

Although USDT briefly surpassed 1.001 USD at the start of the year and dipped below 0.998 USD during some volatile events, its price has remained stable overall. Data shows that as the most traded and liquid stable asset, USDT’s volatility remains within a very narrow band, even amid larger market fluctuations. This stability is a key reason USDT is the preferred choice for institutional settlements.

By combining Tether’s global scale with Parfin’s institutional infrastructure, this partnership aims to accelerate the region’s shift toward blockchain-based financial systems. Both parties plan to unlock new enterprise use cases for USDT, strengthen digital settlement channels, and promote broader institutional adoption of tokenization in Latin America. This is not only a strategic move by Tether in Latin America but also a microcosm of the broader shift from retail trading to institutional financial infrastructure for stablecoins worldwide.