Tether, the company behind the world’s largest U.S. dollar-backed stablecoin, USDT, has invested in Bolivian financial technology startup Peso to expand cryptocy payments across Latin America. The investment will support stablecoin-powered banking, merchant transactions and cross-border transfers in Bolivia, Brazil, Colombia and Argentina. With USDT already integrated into a food delivery platform in Bolivia, Tether is pushing to make digital dollars useful for everyday purchases rather than primarily for cryptocy trading and savings. The company led Peso’s pre-seed funding round, although the investment amount and valuation were not disclosed.
On October 21, Tether announced that it had led a pre-seed investment round in Peso, a Bolivian fintech company developing financial services around USDT.
The funding will help Peso expand its payment infrastructure across four South American markets.
The company’s goal is to connect dollar-backed stablecoins with the financial systems consumers and businesses already use.
Rather than requiring customers to operate exclusively through cryptocy exchanges, Peso is developing services that combine digital wallets with local banking networks, payment terminals and mobile applications.
The investment will support several areas:
Bolivia: Expanding existing USDT payment and banking integrations.
Brazil: Developing additional local cy deposit and withdrawal connections.
Colombia: Expanding stablecoin access through local financial infrastructure.
Argentina: Supporting digital dollar payments and connections with local cy services.
Although Peso operates across these markets, the announcement does not establish that every payment feature is currently available in all four countries.
One of the most notable developments is Peso’s integration with Yango, a digital services platform operating in Bolivia.
Through the integration, customers can order food and pay directly using USDT.
This represents a practical example of cryptocy being used for everyday purchases rather than simply held as an investment.
A customer can use digital dollars to pay for a food delivery order through an application instead of first transferring those funds through a traditional cryptocy exchange.
For merchants, integrations like this could create another way to accept payments from customers who hold dollar-backed digital assets.
However, neither Tether nor Peso disclosed the number of Yango transactions completed using USDT or the total value of those payments.
The integration demonstrates that the service exists, but its current adoption remains unclear.
Peso’s technology is designed to bridge cryptocy wallets and traditional financial infrastructure.
The company offers an application that allows customers to hold USDT, send money internationally and access savings and investment services.
Its payment infrastructure also supports:
QR-code payments: Allowing customers to pay participating merchants.
Point-of-sale services: Helping businesses accept digital payments.
Virtual accounts: Providing accounts registered in customers’ names.
ACH bank transfers: Connecting stablecoin balances with Bolivia’s banking network.
Local cy conversion: Supporting movement between USDT and traditional currencies.
These services aim to reduce the friction involved in converting cryptocy into money that can be spent through local financial systems.
For example, a customer receiving USDT from another country could potentially use Peso’s supported banking connections to access funds locally.
The company plans to strengthen these capabilities as it expands its operations.
Paolo Ardoino, CEO of Tether, described the investment as part of the company’s strategy to expand stablecoin usage beyond cryptocy markets.
According to Ardoino, Peso is developing infrastructure that could make USDT a practical payment method for everyday transactions.
The strategy reflects a significant shift in how stablecoins are being used.
Historically, USDT has been widely used to trade cryptocurrencies, transfer funds between exchanges and maintain dollar-denominated balances.
Tether now wants to expand its role in everyday commerce.
Potential applications include:
Retail shopping and e-commerce
Food delivery
Merchant payments
Cross-border remittances
Banking and local cy transfers
Future transportation and ride-hailing integrations
However, the investment announcement does not confirm that all these services are already operational through Peso.
Alejandro Terán, CEO and co-founder of Peso, said the company’s focus is making USDT easier to use for ordinary financial activities.
Terán emphasized that many Latin Americans already use dollar-backed stablecoins, but accessing those funds through local payment systems can be complicated.
Peso is attempting to solve that problem by connecting USDT balances with merchant payments, banking transfers and mobile applications.
The company’s longer-term goal is to let customers open an account quickly and use digital dollars for transactions without navigating multiple cryptocy services.
Tether’s investment provides additional resources to expand that infrastructure.
However, the companies have not disclosed Peso’s customer count, transaction volume or the number of merchants currently accepting payments through its platform.
Bolivia has become an important market for dollar-backed cryptocurrencies as consumers and businesses seek alternatives amid shortages of U.S. dollars.
Stablecoins such as USDT offer a digital asset designed to track the value of the U.S. dollar.
For people facing difficulty accessing physical dollars or traditional dollar-denominated financial services, stablecoins can provide another way to hold and transfer dollar-linked value.
This has encouraged financial technology companies to develop services connecting USDT with local payment networks.
Bolivia has also been exploring regulatory changes involving cryptocy and stablecoin services.
However, proposals to recognize USDT for certain payments should not be confused with formally making it legal tender.
The country’s evolving regulatory environment will remain important as Peso expands.
The Peso investment is part of a broader effort by Tether to finance companies developing stablecoin payment infrastructure.
On October 13, Tether announced an investment in EFY Finance, another company working on stablecoin-based financial services.
EFY Finance reported approximately 25,000 active accounts and payment infrastructure supporting local accounts across 17 countries.
These investments reflect Tether’s growing interest in companies that connect cryptocy with traditional financial systems.
Instead of focusing exclusively on issuing USDT, Tether is backing businesses that could increase demand for the stablecoin through practical payment services.
That strategy could strengthen USDT’s position in regions where cross-border transfers, access to dollars and payment costs remain significant challenges.
One of the biggest potential benefits of Peso’s infrastructure involves international money transfers.
Traditional cross-border payments may require multiple financial institutions, cy conversions and processing fees.
Stablecoins can provide an alternative transfer mechanism using blockchain networks.
However, customers still need reliable ways to move between digital assets and local currencies.
That is where Peso’s banking integrations become important.
By connecting USDT with local financial institutions and merchant payment systems, the company hopes to make stablecoin transfers more useful outside cryptocy exchanges.
Potential benefits include faster access to funds, broader payment options and fewer intermediaries.
Actual transaction speeds and costs will depend on the blockchain network, local banking partners, exchange rates and applicable fees.
Neither Tether nor Peso has published comprehensive cost comparisons demonstrating guaranteed savings across its target markets.
Although the investment creates opportunities, expanding stablecoin payments across four countries presents challenges.
Each market has its own banking regulations, financial infrastructure and requirements for cryptocy service providers.
Peso will need to develop local partnerships and maintain compliance while expanding its products.
Consumer protection is another important consideration.
USDT is designed to maintain a one-dollar value, but it is not the same as an FDIC-insured U.S. bank deposit.
Users may face risks involving stablecoin issuers, service providers, custody arrangements and local cy conversion.
The company’s success will ultimately depend on whether merchants and consumers adopt the services for regular transactions.
Tether’s investment in Peso represents another step toward integrating stablecoins into everyday financial activity.
By combining USDT wallets with local banking networks, QR-code payments, merchant terminals and food delivery applications, Peso is attempting to make cryptocy payments more practical for ordinary consumers.
The existing Yango integration in Bolivia provides an early example of how the technology can be used.
The next challenge will be expanding those capabilities across Brazil, Colombia and Argentina while building merchant participation and navigating different regulatory systems.
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