Tether Backs Bolivia's Peso to Expand USDT Payments Across South America

Tether has invested in Bolivian fintech startup Peso as it moves to expand its stablecoin payments network across South America. Peso operates payment infrastructure that links Tether's USDT to food delivery services and local banking systems.

Cointelegraph reported on October 21 that Tether led Peso's pre-seed funding round. The proceeds will be used to expand the service in Bolivia and in South American markets including Brazil, Colombia and Argentina. Financial terms were not disclosed.

Peso has introduced USDT payments for Yango, a food delivery service in Bolivia. Users can pay for orders with the stablecoin. The company also supports QR payments and point-of-sale terminals for merchants. It offers virtual accounts linked to Bolivia's banking system through ACH transfers.

Demand for stablecoins in Bolivia has risen since last year as the country has faced a dollar shortage and inflation. In November last year, the government announced an integrated financial system plan allowing banks to offer digital-asset custody and crypto-linked financial products.

In July, authorities began reviewing a regulatory framework that would allow USDT to be used alongside the boliviano and the dollar for payments, savings and trade. The framework has not been finalized, and USDT has not been adopted as legal tender.

USDT's use in South America is also expanding into lending. Tala, a lending platform, said the same day that it had partnered with digital wallet El Dorado to launch a USDT lending service built on the Tempo blockchain.