Tether allocates $20 million to Argentine neobank Ualá in Latin America expansion

Tether has committed $20 million to Ualá, an Argentine neobank that has attracted over 11 million customers in Argentina, Mexico, and Colombia. This investment is part of Ualá’s larger funding round, which raised $197 million in March and valued the company at $3.2 billion.

Ualá’s CEO, Pierpaolo Barbieri, emphasized that Tether is participating strictly as a financial investor due to existing regulations in Argentina and Mexico that currently prevent the integration of Tether's USDT stablecoin.

The investment marks Tether's continued strategy to expand its presence in Latin America, following previous investments in companies like Belo, Adecoagro, and Mercado Bitcoin. Notably, Tether led a $14 million funding round for Belo in April and holds a significant stake in Adecoagro, which operates across Argentina, Brazil, and Uruguay.

Tether's financial backing is sourced from the profits generated by its reserves supporting the USDT, which has a market circulation of $184 billion. The company reported a profit of $1.04 billion in the first quarter of this year, showcasing its robust financial health.