Tether invests in remittance fintech LemFi to expand USDT settlement across Africa and Asia

Tether has invested in the Y-Combinator-backed fintech LemFi, as the stablecoin issuer expands its cross-border settlement services across Africa and Asia.

"Our investment in LemFi reflects our shared vision on how money moves across borders, prioritizing speed, cost, and transparency," Tether CEO Paolo Ardoino said in a statement. "By supporting LemFi’s growth and innovation roadmap, we are helping bring the benefits of a stable digital asset to more people who rely on remittances in their daily lives."

Founded in 2021, LemFi has raised $85 million, according to a company statement. LemFi says it has over 1 million customers.

Part of Tether's investment involves LemFi integrating the stablecoin issuer's settlement rails. Tether's stablecoin, USDT, will be used as a settlement layer across "key corridors" in Africa and Asia where LemFi operates. The goal is to reduce LemFi's dependence on traditional payment networks like SWIFT.

The amount of Tether's investment was not disclosed.

The deal highlights how stablecoin issuers are increasingly focusing on distribution, particularly in emerging markets where cross-border transactions can be costly and slow. LemFi is designed, in part, to assist people working abroad who want to be able to rely on affordable and fast remittance options.

"We have always believed that the financial system should work equally well for everyone, regardless of where they live or where they are sending money," LemFi co-founder and CEO Ridwan Olalere said. "Integrating USDT into our infrastructure brings us closer to that reality, enabling faster, cheaper, and more reliable financial services for the millions of people who depend on us every day."