Tether backs LemFi to expand USDT settlement across Africa and Asia, signaling a stronger push into cross-border payments and stablecoin remittance rails.
Tether backs LemFi to expand USDT settlement across Africa and Asia, signaling a stronger push into cross-border payments and stablecoin remittance rails.
Tether has invested in LemFi, a cross-border payments company, as part of a push to expand USDT settlement infrastructure across Africa and Asia. The deal positions the stablecoin issuer closer to remittance corridors in two of the fastest-growing digital payments regions.
The investment pairs Tether, the issuer of the world’s largest stablecoin by circulation, with LemFi, a fintech focused on cross-border money transfers. The stated goal is to build out USDT-based settlement rails targeting Africa and Asia.
LemFi has previously raised significant venture capital. The company secured $53 million in Series B funding, signaling institutional confidence in its payments platform before Tether’s involvement.
WHAT TO KNOW
USDT settlement is central to the story because stablecoins pegged to the U.S. dollar can serve as an intermediary asset in cross-border transfers, potentially reducing the friction and cost of converting between local currencies.
Africa and Asia represent two regions where remittance flows are substantial and traditional banking infrastructure often leaves gaps. LemFi’s existing cross-border payments network could provide the distribution layer for USDT-denominated settlements in these markets.
The connection between stablecoin settlement and cross-border utility is straightforward: USDT can move value across borders on blockchain rails without requiring correspondent banking relationships. For corridors between African and Asian economies, this could reduce both transfer times and fees.
However, the operational details of how LemFi plans to integrate USDT settlement remain limited at this stage. Whether the integration will cover specific country corridors, which blockchain networks will carry the transactions, and how local currency on-ramps and off-ramps will work are questions that the announcement does not yet answer.
The move comes as other financial companies explore similar territory. Standard Chartered’s decision to absorb its Zodia crypto custody unit reflects a broader trend of traditional and crypto-native financial firms converging on digital asset infrastructure.
Tether’s investment in LemFi represents a strategic bet that stablecoin settlement will gain traction in emerging markets. Rather than focusing on trading volume or speculative demand, this deal ties USDT adoption directly to payments infrastructure.
The distinction matters. Settlement adoption, where USDT serves as a transfer mechanism for real economic activity, differs from broader crypto market sentiment driven by speculation. Tether appears to be positioning USDT as utility-grade financial plumbing rather than a trading instrument alone.
Stablecoin infrastructure in emerging markets has also drawn regulatory attention in recent months. Companies building in this space face varying licensing requirements across African and Asian jurisdictions, which could shape how quickly LemFi’s USDT settlement capabilities scale. Security considerations remain relevant as well; the recent exploitation of the Verus Ethereum bridge for $11.6 million underscores the risks that cross-chain and cross-border crypto systems face.
For Tether, the investment extends a pattern of backing companies that embed USDT into real-world payment flows. For LemFi, Tether’s backing adds both capital and direct access to the stablecoin’s liquidity. Whether this translates into meaningful settlement volume in Africa and Asia will depend on execution, regulatory clearance, and local market adoption.
The financial health of companies operating at the intersection of crypto and traditional payments is also worth watching. Bitcoin Depot’s recent Chapter 11 filing illustrates that bridging crypto infrastructure with real-world financial services carries its own set of business risks, even when the underlying technology works as intended.
Additional source references: source document 1.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
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