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Tether puts $20 million into Argentine neobank Ualá in equity deal
The investment comes as part of Ualá’s $197 million funding round that was led by Allianz X at a $3.2 billion post-money valuation.
Tether has invested $20 million in Argentine neobank Ualá, taking an equity stake as the stablecoin issuer continues to expand its presence in Latin America, CoinDesk reports. Ualá serves more than 11 million customers across Argentina, Mexico, and Colombia, offering accounts, cards, lending, and investment products.
Ualá’s CEO Pierpaolo Barbieri said regional regulations in Argentina and Mexico prevent any near-term integration of USDT, and that Tether is participating only as a financial investor, according to CoinDesk. Tether’s involvement was first mentioned in Ualá’s funding announcement, with the specific $20 million figure disclosed later.
The deal follows Ualá’s $197 million round announced in March, which was led by Allianz X at a $3.2 billion post-money valuation. Based on that headline valuation, CoinDesk estimates the $20 million investment would equate to roughly a 0.6% stake in post-money equity, though the exact terms may differ.
CoinDesk also notes Tether’s broader regional activity, including leading a $14 million round for payments wallet Belo in April and controlling 70% of agricultural and energy producer Adecoagro. It adds that Tether invests using excess capital generated from income earned on the reserves backing USDT, which has $184 billion in circulation and produced a $1.04 billion first-quarter profit.