Tether has led a $7 million Series A funding round in Pact Labs, a fintech infrastructure provider, to expand the use of its U.S.-focused dollar-backed stablecoin, USA₮, into payroll, lending, and everyday payments. The investment targets the $11 trillion U.S. payroll market by enabling faster, blockchain-based wage settlements. Pact Labs has facilitated nearly $2 billion in on-chain loans and serves over 500,000 users. This strategic move is part of Tether’s broader effort to integrate stablecoins into mainstream financial services, moving beyond crypto trading.
Tether is expanding its U.S. stablecoin strategy by leading a $7 million Series A funding round in fintech infrastructure provider Pact Labs. The investment, which also included Blockchange Ventures and Lasagna, aims to scale USA₮ across payroll, earned wage access, lending, and everyday payments.
This funding reflects a broader strategy to move stablecoins beyond crypto trading into mainstream financial services. The U.S. payroll system handles over $11 trillion annually, but much of its infrastructure relies on outdated batch processing technologies that delay wage settlements.
Tether CEO Paolo Ardoino stated, “This confirms what our transaction data has shown for years: the demand for dollar-denominated settlement is a wages story.” He added that workers in emerging markets have long used stablecoins to bridge payroll gaps, and the company now plans to bring similar capabilities to the U.S.
Pact Labs builds infrastructure allowing fintechs to use blockchain-enabled payment rails without requiring direct cryptocurrency usage by customers. The company claims it has facilitated over $2 billion in on-chain loan volume and originated over $1 billion in loans for over 500,000 customers through seven fintechs. Its platform supports blockchain networks including Aptos and Celo.
This investment follows Tether’s recent $100 million strategic investment in Anchorage Digital Bank. USA₮ is distributed via Anchorage’s platform, making Pact Labs another component in Tether’s U.S. expansion plans.
These investments come amid heightened competition in the stablecoin industry, with Circle extending USDC to institutions and PayPal gaining traction with PYUSD. The key factor to watch is how effectively Pact Labs’ fintech relationships can drive significant adoption of USA₮.
