Tether announced an investment in cross-border financial platform LemFi, further pushing USDT into real-world payment scenarios. Both parties stated that this investment will support LemFi in integrating USDT settlement into multiple cross-border remittance channels, covering fund transfers between Africa, Asia, and the UK, US, Canada, and Europe.
The focus is on cross-border remittance channels.
LemFi primarily serves cross-border money transfer users, focusing on remittance needs between developed markets and emerging economies in Africa and Asia. According to both parties, once USDT is integrated, it will be used in the settlement process of relevant payment channels to shorten arrival times and reduce transfer costs.
Tether stated that one of the goals of this collaboration is to replace the multi-day SWIFT process in traditional cross-border payments with near real-time stablecoin settlements. Both parties also mentioned that they will gradually expand the use of USDT to a wider range of LemFi products.
Stablecoins are accelerating their entry into real-world payment scenarios.
This investment also reflects a recent trend in the stablecoin industry. As discussions surrounding stablecoin regulation continue in the United States, leading issuers are shifting their focus from trading and DeFi to real-world financial scenarios such as payments, remittances, and clearing.
Tether CEO Paolo Ardoino stated that this partnership aligns with the company's long-term strategy of improving cross-border capital flows through blockchain infrastructure. LemFi CEO and co-founder Ridwan Olalere added that the investment represents recognition of the company's long-term development direction.
Africa and Asia become the focus of competition
Africa and Asia are considered key regions for stablecoin payments due to high demand for cross-border remittances, high friction in traditional payment methods, and relatively limited banking services in some markets. This makes these regions crucial markets for stablecoin issuers and fintech platforms vying for access to payment networks.
This collaboration suggests that Tether is attempting to further integrate USDT from cryptocurrency trading into cross-border payment infrastructure. For the stablecoin industry, payment and settlement capabilities are becoming a new area of competition beyond trading.
