Tether led a $7 million Series A investment in Pact Labs, according to a statement from Tuesday, with the goal of driving adoption of USAT, its stablecoin designed specifically for the U.S. market. Blockchange Ventures and Lasagna also participated in the funding round. The investment focuses on improving wage settlement, as Tether aims to enable faster payroll processing for American workers through USAT, which was launched in January to comply with the GENIUS Act stablecoin legislation passed by Congress. Tether's primary stablecoin USDT, the world's largest by supply, is not available to U.S. customers despite being backed by USD-denominated reserves.
Tether Leads $7 Million Series A in Pact Labs
Tether led the $7 million Series A funding round in Pact Labs, with participation from Blockchange Ventures and Lasagna. Tether CEO Paolo Ardoino stated that workers in emerging markets have used USDT to bridge payroll gaps for years because their domestic systems failed them first. "We are now building the same capability into the U.S. market, with USA₮, because even a functional system built on batch processing means unnecessary costs for the people who can least absorb them," Ardoino said in a statement.
USAT Designed for GENIUS Act Compliance
Tether launched USAT in January to comply with the GENIUS Act, the stablecoin legislation passed by Congress. USDT, although primarily backed by USD-denominated reserves, is not available to U.S. customers. USAT was specifically designed to meet U.S. regulatory requirements under the GENIUS Act framework.
Pact Labs to Provide Payroll and Payment Infrastructure
Pact Labs will serve as an infrastructure provider for clients wishing to use USAT for payroll, credit, and payments, according to Tether. The aim is to help workers receive their wages faster and enable employers to execute payments 24/7. Bo Hines, CEO of Tether USAT, stated: "Pact Labs gives us the rails to make digital dollars designed to be compliant with U.S. regulations directly into the hands of millions of American workers, faster, cheaper, and without the intermediaries that slow them down."
USAT Supply Exceeded $140 Million in April
According to Tether's most recently published attestation, the supply of USAT exceeded $140 million in April.
FAQ
What did Tether announce regarding Pact Labs?
Tether led a $7 million Series A investment in Pact Labs, according to a statement from Tuesday, to drive adoption of USAT for U.S. payroll and payment infrastructure. Blockchange Ventures and Lasagna also participated in the funding round.
How does USAT differ from Tether's USDT stablecoin?
USAT was launched in January to comply with the GENIUS Act stablecoin legislation passed by Congress and is designed for U.S. customers. USDT, the world's largest stablecoin by supply, is not available to U.S. customers despite being backed by USD-denominated reserves.
What was the supply of USAT in April?
According to Tether's most recently published attestation, the supply of USAT exceeded $140 million in April.
