Tether backs LemFi to expand USDT remittances in Africa, Asia

Tether has invested in LemFi to help expand USDT settlement services across Africa and Asia. The funding will support scaling of LemFi’s payment infrastructure and access to USDT liquidity for cross-border transfers.

LemFi plans to use blockchain-based USDT rails to move value between senders and receivers. Where recipients need local currency, conversion will be completed by regulated payout partners at the edges of the network.

The company will use the investment to expand partnerships with local payout networks and to increase on- and off-ramp capabilities linking bank accounts, mobile wallets and cash payout points to USDT settlement. The goal is to reduce the time between payment initiation and receipt of local currency by settling transfers on-chain and executing conversions at payout points.

Tether will provide USDT liquidity and supporting infrastructure for on-chain settlement. Using USDT can reduce the number of intermediaries and correspondent-banking steps by enabling faster transfers on public blockchains that are converted to fiat at payout locations.

Operations will focus on remittance corridors in Africa and Asia where cross-border flows are large and traditional settlement channels are slower or more costly. LemFi will work with regulated local partners to handle cash collection and distribution and to meet licensing and compliance requirements in each country.

Technical work will include integrating multiple blockchain networks that support USDT, improving liquidity management to address exchange-rate and conversion risks, and refining user interfaces for senders and recipients unfamiliar with crypto rails. The company will coordinate with payment service providers and local banks to manage fiat on- and off-ramps.

Compliance measures will include customer verification, transaction monitoring and reporting to meet national rules. Partnerships with regulated local payout providers will be used where direct crypto-to-fiat rails are limited.

The partnership is intended to strengthen technical and liquidity capabilities for settling remittances in USDT while building the local networks needed to convert on-chain value into cash or bank credits for end users across selected corridors in Africa and Asia.