Tether invests in LemFi for near-instant USDT remittances

Tether has invested in cross-border payments platform LemFi to integrate its USDT stablecoin as a settlement layer for near-instant remittances. The partnership, announced May 18, aims to replace multi-day SWIFT settlement chains with stablecoin-based transfers on supported blockchains.

The funding will support LemFi’s technical work to add USDT across its payment corridors and to expand the stablecoin’s use across LemFi’s product suite over time. LemFi serves millions of users sending money between developed markets and emerging economies, with a focus on flows from the UK, US, Canada and Europe to destinations in Africa and Asia.

Under the arrangement, senders can convert local currency into USDT on LemFi’s platform, move funds almost instantly across borders on compatible blockchains, and have recipients convert USDT back to local currency or collect cash through LemFi’s payout partners. The companies said the process is intended to shorten settlement times that currently stretch over several days in correspondent banking networks and to lower transfer costs for end users.

Paolo Ardoino, Tether’s chief executive, said the partnership aligns with the company’s efforts to improve cross-border money movement through blockchain infrastructure.

Ridwan Olalere, LemFi’s co-founder and CEO, described the investment as validation of the company’s plan to deliver faster and more accessible global financial services.

The announcement comes as stablecoin issuers and financial firms increasingly test tokenized payment rails and continuous-settlement systems. In the United States, lawmakers are debating stablecoin regulation through proposals such as the GENIUS Act, and some banks and fintech firms have been trialing blockchain-based settlement methods.

Market participants point to the high remittance volumes and payment friction in many African and Asian markets as reasons for targeting those corridors. Faster settlement and lower fees can affect household incomes where banking access is limited.

Tether said USDT integration will roll out progressively across LemFi’s products rather than as a single launch. The firms did not detail specific compliance frameworks for each corridor in the announcement. Observers will track the technical performance on settlement speed, the cost outcomes for users, and how rapidly the integration scales across the targeted corridors.