Tether Backs Argentine Neobank Ualá With a $20 Million Strategic Investment

Tether, the stablecoin issuer, has invested $20 million in Ualá, an Argentine neobank serving over 11 million users across Argentina, Mexico, and Colombia. The investment was part of a larger $197 million funding round led by Allianz X, the strategic investment arm of Allianz Group, which valued Ualá at $3.2 billion in March. The funding round was announced earlier this year, but Tether’s involvement was only recently disclosed.

Tether CEO Paolo Ardoino praised Ualá’s achievements, stating that the neobank has built “one of the most ambitious and widely used digital financial platforms in Latin America.” He added that the investment reflects Tether’s confidence in Ualá’s ability to meet the region’s demand for accessible financial services.

Despite Tether’s backing, the investment will not lead to the integration of stablecoins on Ualá’s platform. Pierpaolo Barbieri, founder and CEO of Ualá, clarified that the neobank operates as a licensed bank in its markets, and current regulations prevent such offerings. However, reports indicate that the Central Bank of Argentina is studying the possibility of allowing banks to offer crypto services as soon as this year.

Ualá’s primary target for expansion is Mexico, where Barbieri sees significant growth potential. “There is competition in Mexico, certainly, but the total addressable market is infinite,” he told Bloomberg.

This investment is part of a broader wave of Tether investments in Latin American fintech companies. Earlier this year, Tether invested $20 million in Brazil-based exchange Mercado Bitcoin and participated in Argentine cryptocurrency platform Belo’s $14 million Series A funding round. These moves position Tether to benefit from the region’s growing fintech ecosystem, as traditional finance and cryptocurrency increasingly intersect.

Source: https://news.bitcoin.com/tether-backs-argentine-neobank-uala-with-a-20-million-strategic-investment/