Leading stablecoin issuer Tether has finalized a $20 million investment in the Argentine neobank Ualá, securing an equity stake in a financial platform that currently serves more than 11 million customers across Argentina, Mexico, and Colombia. The capital injection was executed as part of Ualá’s larger $197 million funding round announced in March, which was led by Allianz X and established a $3.2 billion post-money valuation for the fintech firm. While Tether was noted as a participant in the initial announcement, the specific $20 million figure was disclosed later. Based on the headline valuation, the transaction represents an approximate 0.6% stake in the neobank’s post-money equity, though specific final terms may vary, CoinDesk said in a news report.
Despite Tether’s prominent role in the cryptocurrency sector, the partnership remains strictly financial for the time being. Ualá Chief Executive Officer Pierpaolo Barbieri stated that current regulatory frameworks in both Argentina and Mexico preclude any near-term integration of the USDT stablecoin, confirming that Tether participated in the funding round purely as a financial investor. Ualá continues to operate its core suite of traditional digital financial services, providing accounts, payment cards, lending services, and investment tools to its expanding regional user base.
This transaction underscores Tether’s accelerating investment strategy across South America, particularly within Argentina. The company previously led a $14 million funding round for the payments wallet Belo in April and holds a commanding 70% stake in Adecoagro, a major agricultural and energy producer operating across Argentina, Brazil, and Uruguay. Furthermore, Tether recently expanded its regional footprint with another $20 million investment in the prominent Brazilian cryptocurrency exchange, Mercado Bitcoin.
Tether allocates capital for these venture investments using excess reserves generated by the interest income on the assets backing its USDT stablecoin. Driven by a circulating supply that has reached $184 billion, the issuer’s financial position remains robust, having posted a net profit of $1.04 billion during the first quarter of the year.
