Tether, the popular stablecoin issuer, has recently announced a strategic investment in Orionx, a digital asset platform operating in Latin America. This investment, as stated in a press release on June 3, aims to drive the adoption of stablecoin-powered financial services across the region, particularly in economies that are underserved and prone to inflation.
Orionx currently serves users in countries such as Chile, Peru, Colombia, and Mexico. With the infusion of capital from Tether, the company plans to enhance its technical infrastructure, expand its business solutions, and streamline services like remittances, collections, and treasury operations.
One of the key objectives of Tether’s investment in Orionx is to support the firm’s innovative “Remittances as a Service” model, which enables merchants and institutions to process cross-border payments with minimal fees, fast settlement times, and local currency conversions. This system also simplifies the onboarding process, allowing users to transact without the complexities typically associated with traditional banking systems.
Paolo Ardoino, the CEO of Tether, emphasized that this investment aligns with the company’s mission to support technology that creates a significant impact. He stated, “By participating in Orionx’s series A round, we are not only backing a high-impact company but also advancing our broader goal of making stablecoin-powered financial tools accessible to underserved communities in the region.”
This move is part of Tether’s broader strategy to deepen the integration of stablecoins in regions where traditional banking services may be lacking. Stablecoins have gained traction in Latin America as individuals and businesses seek to shield their assets from currency devaluation. Tether cited data from Chainalysis, indicating that the region processed over $400 billion in crypto transactions between July 2023 and June 2024, with a significant portion involving stablecoins like USDT.
Despite the growth of crypto adoption, many parts of Latin America still face financial exclusion, with millions of adults lacking access to banking services due to factors such as geographic constraints, high fees, and stringent documentation requirements. In response to this gap, crypto platforms like Orionx are stepping in to provide accessible financial solutions.
The investment in Orionx is just one of several strategic moves made by Tether to expand its influence beyond stablecoins. The company has invested in various sectors, including mining, video platforms, and sports teams. However, Tether’s flagship stablecoin, USDT, remains its primary focus, with a market capitalization exceeding $153 billion, making it the most widely used stablecoin globally.
As Tether continues to drive innovation and financial inclusion through strategic investments, the collaboration with Orionx showcases the company’s dedication to empowering underserved communities in Latin America with stablecoin-powered solutions.