Tether invests $20M in Ualá as neobank closes $197M round

Tether invested $20 million in Argentine neobank Ualá, joining a $197 million funding round led by Allianz X that valued the fintech at $3.2 billion.

"Latin America remains one of the most under-invested regions in the world, with demand for financial services that matches the region's talent and ambition," Pierpaolo Barbieri, chief executive officer at Ualá, said in a statement.

The investment represents roughly 10 percent of the total round, which was first announced in March and included participation from Stone Ridge Holdings Group, Tencent, TABLE Holdings, Soros Fund Management, D1 Capital Partners and Jubarte. Ualá, founded in 2017, holds banking licenses in Argentina, Mexico and Colombia and offers debit cards, credit cards, payments, loans and investment products through its mobile app to more than 11 million customers.

The deal deepens Tether's push into Latin American financial infrastructure, following its $20 million investment in Brazilian crypto exchange Mercado Bitcoin in July and a $14 million Series A in Argentine crypto platform Belo in April. USDT, the world's largest stablecoin by market capitalization at $184.2 billion, has seen heavy adoption in Argentina as persistent inflation and currency instability drive demand for dollar-denominated digital assets.

Tether's $20 million check marks one of the largest direct equity investments by a stablecoin issuer into a traditional fintech company. The stablecoin giant, which issues USDT on Ethereum, Tron and Solana, has been expanding beyond its core business into broader financial services infrastructure across Latin America.

The region has become a key battleground for stablecoin adoption. Argentina has been one of the most active USDT markets globally, with consumers using the dollar-pegged token as a hedge against local currency depreciation. Ualá's platform, which already serves as a gateway to financial services for millions of unbanked and underbanked users, could potentially integrate USDT-based products such as remittances, savings and payments.

Allianz X's participation as lead investor also signals traditional insurance and asset management interest in fintech distribution. The partnership combines Ualá's digital reach with Allianz's insurance and investment products across Latin America, according to the company.

The competitive landscape in Latin American fintech is intensifying. Nubank, the Brazilian digital bank, has surpassed 100 million customers and launched crypto trading features. MercadoLibre's Mercado Pago continues expanding digital payments. Ualá, with its $3.2 billion valuation and fresh capital, is a contender in the tier below those regional leaders.

This article is for informational purposes only and does not constitute investment advice.