Tether invested in LemFi, a financial technology company widely used by immigrant communities in Africa and Asia. With this collaboration, USD₮ stablecoin will be used directly in cross-border money transfers on the LemFi platform. It is aimed to provide a fast, low-cost and reliable alternative for millions of people, especially those living in the UK, USA, Canada and Europe, who send money to their families abroad.
Stablecoin solution instead of traditional transfer methods
Money transfers made via the SWIFT system used in traditional banking can often take several business days and incur high transaction fees. This situation causes the money sent by people working abroad to their families to arrive late and to reduce the amount significantly.
Tether’s investment in LemFi aims to overcome this problem by offering almost instant transfers with the USD₮ stablecoin. LemFi targets African and Asian immigrant communities that have been underserved by most banks to date. For these users, the new model stands out as a technological infrastructure that will complement the shortcomings of traditional financial institutions.
LemFi CEO Ridwan Olalere emphasized that Tether’s investment is not only a financial milestone for the company, but also an indicator of the correctness of the path the company is following. He stated that the financial system should work equally regardless of where people live or the amount of money they send.
In addition to reducing the cost of instant money transfer, it is also expected to provide advantages to users in terms of transparency and transaction tracking. Tether CEO Paolo Ardoino pointed out that this partnership is an important step towards financial inclusion. Ardoino stated that their goal is to create real solutions needed by 585 million users around the world.
A new model for financial inclusion in emerging markets
The cooperation between Tether and LemFi will not be limited to cross-border payments. It is planned to integrate the USD₮ infrastructure into other financial products of LemFi in the future. In this way, it will be possible to trade in units that maintain their value instead of local currencies, especially in countries experiencing currency fluctuations or high inflation.
The value of stablecoins in such markets lies in the fact that they offer predictable and protected value for both sender and receiver. In transfers made with USD₮, the aim is for the money to reach the other party quickly and completely. In addition, the combination of Tether’s global liquidity and LemFi’s regional user base creates a strong operational basis that can transform insufficient traditional financial services.
It is anticipated that, thanks to the cooperation, access to transparent, fast and affordable international money transfers will increase, especially for communities that are far from the financial system.
Tether CEO Paolo Ardoino summarized this vision with the statement: “In line with our goal of increasing financial inclusion, we are committed to partnering with platforms that offer scalable solutions that meet the real needs of millions of users around the world.”
The partnership has the potential to pave the way for broader, accessible and sustainable financial models for the future of the industry, while securing users’ money.
