Bitcoin News Update: Tether Connects Conventional Finance and Blockchain Through Expansion in Latin America

Tether, the company behind the world's most widely used stablecoin, has strengthened its presence in Latin America by investing in Parfin, a local crypto infrastructure provider, to boost institutional uptake of its

stablecoin. Revealed in November 2025, this collaboration as a settlement method for cross-border transactions, tokenization of real-world assets (RWA), and institutional lending markets, utilizing Parfin’s blockchain settlement, custody, and trading solutions. Paolo Ardoino, Tether’s CEO, highlighted that this initiative supports the company’s goal of connecting conventional finance with blockchain, .

This investment is part of Tether’s ongoing efforts to establish USDT as more than just a liquidity instrument for crypto trading platforms.

in crypto transactions in 2025—primarily driven by USDT—Tether views the region as essential for advancing institutional blockchain integration. Parfin, a major infrastructure player, with current financial networks, enabling institutions to issue tokenized assets while upholding compliance and security standards. Its proprietary platform, Rayls, , further advancing Tether’s aim for programmable, efficient financial systems.

This development follows Tether’s previous investments in Bitcoin-collateralized lending platforms such as Ledn, where

in BTC-backed loans since 2023. The stablecoin leader also for its gold-backed token, Gold (XAUT), now exceeding $2.1 billion, indicating rising interest in asset-backed stablecoins. At the same time, — buying regardless of market price — has established it as a “buyer indifferent to price,” according to CEO Samson Mow.

Tether’s expansion in Latin America coincides with increasing regulatory attention in the area. For example, Brazil is considering applying its financial transaction tax (IOF) to stablecoin-based international payments,

while tackling anti-money laundering concerns. The central bank’s recent move to classify stablecoins as foreign exchange transactions has , with enforcement expected to start in February 2026. Tether’s alliance with Parfin appears strategically timed to address these regulatory changes, positioning USDT as a compliant option for institutional users.

Tether’s approach also reflects wider trends in the crypto-backed lending sector,

by 2033. By focusing on Latin America—a region where traditional banking infrastructure is less developed—Tether aims to meet the growing need for liquidity solutions that do not require selling digital assets.