Tether crypto expansion: EFY investment targets Latin American payments

Tether has invested in EFY Finance’s seed funding round to expand institutional use of USDT and USA₮ in Latin America. The company announced the investment on October 13 without disclosing its size.

The backing targets the connections between stablecoins and everyday financial services, including bank accounts, cards, and cross-border payments. EFY already supports settlement to local accounts in 17 countries, giving Tether an established network to build on.

Connecting digital dollars with local accounts

Accounts, custody for digital assets and local currency to stablecoin conversion are services provided by EFY. It serves a lot of active individual and business accounts, according to Tether.

For a business that is paying suppliers overseas, it is more than just sending tokens between wallets. The business receiving the payment may want it to come to a local bank account, and this is where EFY is able to help.

The countries where EFY already operates with its own institutions and with which relationship Tether aims to expand include Bolivia, Colombia, Mexico, El Salvador, Panama, and Ecuador.

The announcement covers both USDT and USA₮.

The 17-country network already exists

The investment does not mark the launch of payments in 17 new countries. EFY announced that settlement coverage in February, with an update in July.

This service lets users easily transfer money to their business, and the funds are accessible in a local account right after the transaction, without opening up an operation account in all their destinations. 

The businesses can manage payments, review payment and other rates, and track their transfers via one simple platform.

However, coverage does not mean every service is available to every customer. EFY says access depends on the destination, currency, account type, and compliance requirements. Banking hours and the payment route can also affect settlement times.

What the investment adds

EFY CEO Andres Tobon said the next goal should be building tools to get people to use stablecoins into their workflows. Tether’s interest is in helping it happen.

The deal is about payment infrastructure and distribution. Its impact will depend on how effectively EFY expands access and handles transactions across its supported markets.

Final Summary

• Tether-backed EFY’s seed round is to expand institutional access to USDT and USA₮ in Latin America.
• EFY’s 17-country settlement coverage has been in place before the investment.