Tether Intensifies Latam Bet With $20 Million Investment in Ualá
The integration of cryptocurrency and traditional finance in Latam is growing, as capital seeks to position itself to benefit from the rise of fintech alternatives in the region.
Tether, one of the largest companies in the cryptocurrency industry, has been revealed to be part of a funding round backing Ualá, an Argentine neobank focused on Argentina, Mexico, and Colombia, with a user base of over 11 million.
While the round was announced back in March, the company only recently disclosed Tether’s involvement, which has put $20 million behind Ualá’s expansion bid across the region. The round, led by Allianz X, the strategic investment arm of Allianz Group, brought $197 million to bankroll Uala’s expansion in the region.
Tether CEO Paolo Ardoino praised Ualá’s achievements, highlighting that it had built “one of the most ambitious and widely used digital financial platforms in Latin America.”
“Its growth reflects the enormous demand across the region for financial services that are more accessible, efficient, and designed around the needs of consumers. We are pleased to support the Ualá team as they continue investing in technology and expanding their reach,” he declared.
Pierpaolo Barbieri, founder and CEO of Ualá, welcomed Tether into the ranks of the neobank’s backers, stressing that its involvement “reinforces our conviction in what we are building: the most comprehensive and disruptive financial ecosystem in the region,” hinting at new investments in technology to redefine the financial experience of millions.
Barbieri clarified that the investment would not include any stablecoin integration on its platform, as Ualá operates as a licensed bank in these markets and regulations would prevent these actions. Nonetheless, according to reports, the Central Bank of Argentina is studying allowing banks to offer crypto services as soon as this year.
But Ualá’s main target is Mexico, which Barbieri considered a market where the neobank can reach significant penetration. “There is competition in Mexico, certainly, but the total addressable market is infinite,” he told Bloomberg.
With this move, Tether completes a wave of investments in similar Latam-focused fintech companies, including a recent $20 million investment in Brazil-based exchange Mercado Bitcoin, and a participation in Argentine cryptocurrency platform Belo’s $14 million Series A funding round in April.