Woofun AI reports that Tether has committed $20 million to Ualá, an Argentine digital bank serving over 11 million customers across Argentina, Mexico, and Colombia. This capital injection is part of a broader $197 million funding round announced in March, led by Allianz X, which values Ualá at $3.2 billion. Based on this valuation, Tether’s stake represents approximately 0.6% of the company.

Ualá CEO Pierpaolo Barbieri clarified that regulatory constraints in Argentina and Mexico have prevented the immediate integration of USDT, noting Tether’s role is strictly financial. This investment aligns with Tether’s broader South American strategy, which includes a $14 million stake in Belo, a majority acquisition in Adecoagro, and a $20 million investment in Mercado Bitcoin earlier this month. Tether utilizes excess capital from USDT reserve interest for these deployments, with USDT circulation reaching $184 billion and Q1 net profit hitting $1.04 billion.