- Tether leads Orionx’s Series A to boost crypto payments in Latin America’s underbanked markets.
- Latin America handled $415 billion in crypto from July 2023 to June 2024, per Chainalysis.
- Orionx now offers stablecoin services to help with payments and treasury management in LATAM.
Tether has announced a strategic investment in Orionx, a Chilean cryptocurrency exchange that operates in Peru, Colombia, and Mexico. This investment finalizes Orionx’s Series A funding round, which Tether led, as both companies seek to broaden digital finance services throughout Latin America.
Orionx offers cryptocurrency solutions primarily directed towards B2B and retail sectors, incorporating cross-border payment systems and treasury services. The company intends to upgrade its infrastructure, develop tools utilizing stablecoins, and broaden its outreach to underserved communities within the region through the acquisition of new capital.
According to Chainalysis data, Latin America saw approximately $415 billion in crypto transactions between July 2023 and June 2024, showing a growing demand for digital assets in the area.
Paolo Ardoino, Tether’s CEO, emphasized the strategic nature of the investment, stating that the deal would “advance our broader vision of making stablecoin-powered financial tools accessible” across underbanked areas. The initiative follows Tether’s earlier support of Orionx via Bitfinex, its sister company, in 2023.
Focus on Financial Inclusion Through Crypto Infrastructure
Tether’s investment supports ongoing initiatives to address financial exclusion in Latin America. This region still has one of the highest proportions of unbanked adults globally, as numerous individuals face geographic, regulatory, and cost obstacles that limit their access to conventional financial systems.
In this context, stablecoins present a viable option by facilitating low-cost and secure transactions independent of traditional banking systems. Orionx enables local businesses and institutions to process payments with dollar-pegged digital assets, thus simplifying operations for those usually not part of the banking ecosystem.
Orionx CEO Joel Vainstein described the collaboration as a key shift for the company’s B2B strategy. “We see exponential growth in the number of companies seeking faster and more cost-efficient solutions for payment collection, distribution, and treasury management,” he stated. The partnership with Tether, he added, will accelerate Orionx’s capacity to meet rising demand.
Stablecoins Gain Traction Amid Economic Instability
Latin America’s increasing fascination with cryptocurrency is largely influenced by regional macroeconomic instability. In nations such as Argentina and Brazil, notable currency devaluations have led both businesses and individuals to turn to stablecoins as a protection against inflation.
Furthermore, Chainalysis data indicates that stablecoins accounted for most of the indirect cryptocurrency flows to global exchanges in the region over the last year. This demand illustrates a larger trend towards digital dollar-denominated assets, especially in regions with regulatory frameworks that support institutional adoption.
Orionx’s infrastructure allows users to easily access fiat onboarding and offboarding, rapid remittance services, and smooth onboarding processes. With Tether’s support, these features will be significantly enhanced, establishing stablecoins as a key component of LATAM’s digital financial landscape.
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