Tether Invests in LemFi To Cut Remittance Costs Across Africa, Asia

The investment integrates USDT as a core settlement layer for LemFi’s remittance platform, targeting faster and cheaper transfers between the UK, US, Canada, Europe and recipients across Africa and Asia.

Remittances are international money transfers sent by workers living abroad to families in their home countries. The partnership will enable near-instant settlement that bypasses multi-day SWIFT and correspondent banking chains. SWIFT is the global messaging network traditionally used by banks for international payments. Financial terms, including the size of Tether’s stake, whether it is equity or a convertible note, any post-money valuation or ownership percentage, remain undisclosed.

Stablecoins reshape high-cost corridors

LemFi reportedly serves more than 1mn customers and processes around $1bn in monthly transactions. It focuses on diaspora communities sending money to high-remittance markets such as Nigeria, Ghana, India and Pakistan. The company previously raised over $85mn, including a $53mn Series B round in early 2025. Traditional rails in Sub-Saharan Africa still carry average costs near 8%, according to World Bank data, making the region the world’s most expensive for remittances.

Stablecoin integration promises material savings. Industry estimates suggest blockchain-based transfers can reduce fees significantly in many corridors, turning days of waiting into minutes while preserving dollar value against local currency volatility.

"Tether’s investment is a significant milestone for us at LemFi, but more importantly, it is a validation of the direction we are heading," said Ridwan Olalere, LemFi CEO and co-founder.

Tether expands infrastructure strategy

The move aligns with Tether’s broader strategy of deploying stablecoin profits into payment systems and emerging networks. USDT already sees heavy use in developing economies for savings and everyday transactions. Paolo Ardoino, Tether CEO, said the deal reflects a shared vision on cross-border money movement.

"Our investment in LemFi reflects our shared vision on how money moves across borders, prioritizing speed, cost, and transparency," Ardoino said.

The announcement does not provide a specific rollout schedule for USDT integration or measurable targets for transaction volume, cost reduction or user adoption. It also offers no updated financial performance metrics for LemFi, such as current revenue, profitability or unit economics.

Competitors leveraging USDC (Circle’s dollar stablecoin) and other rails are already active in similar remittance corridors across Africa, Asia and Latin America. The release contains no data on current USDT remittance market share versus rivals or expected gains.

Regulatory considerations remain important in these markets. The announcement includes no discussion of compliance frameworks, licensing details in target African and Asian countries, or plans to address dollarization risks – the process by which economies increasingly rely on the US dollar instead of their local currency – previously highlighted by the IMF and local central banks. In addition, no details were provided on Tether’s potential governance rights, such as board seats, veto rights or long-term strategic involvement.

Tether says it will roll out USDT infrastructure progressively across LemFi’s multicurrency wallets and transfer products, without providing a specific timeline.