Tether leads $7m round to push USAT stablecoin into US payroll
Tether is funding infrastructure to bring its compliant USAT stablecoin into the American payroll market, marking a significant push by the world's largest stablecoin issuer to capture real-world payment volumes in the U.S.
Tether has led a $7 million Series A funding round in Pact Labs to build payment infrastructure for its USAT stablecoin, targeting the U.S. payroll and credit markets. Blockchange Ventures and Lasagna also participated in the round. The capital will be used to establish Pact Labs as a core infrastructure provider for employers seeking continuous, 24/7 wage settlement.
The investment signals a significant strategic pivot for Tether. The company's flagship USDT token, the world's largest stablecoin by supply, is explicitly unavailable to U.S. customers. By deploying USAT, a token launched in January specifically to comply with the GENIUS Act stablecoin legislation passed by Congress last year, Tether is securing a foothold in the regulated American financial system.
For market participants, the move highlights how stablecoin issuers are looking beyond crypto trading to capture real-world payment volumes. Tether is positioning USAT as a direct replacement for the friction inherent in traditional batch-processing payroll systems. This targets a massive addressable market in consumer finance, specifically earned wage access and employer-driven credit.
"Workers in emerging markets have used USD₮ to bridge payroll gaps for years because their domestic systems failed them first," Tether CEO Paolo Ardoino said. "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."
Pact Labs is tasked with building the technical plumbing necessary for businesses to integrate these compliant digital dollars. "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," said Bo Hines, CEO of Tether USAT.
The push into everyday payments comes as USAT attempts to scale its circulation. According to its most recently published attestation, the stablecoin's supply exceeded $140 million in April. While this remains a fraction of the broader stablecoin market, displacing legacy payroll intermediaries represents a distinct commercial avenue that could drive non-speculative demand.
