- Tether has led a $7 million Series A investment in Pact Labs to expand adoption of its U.S.-focused stablecoin, USAT.
- The partnership aims to modernize payroll, payments, and lending with 24/7 stablecoin settlement.
- USAT was built to comply with U.S. stablecoin regulations and is designed specifically for the American market.
Tether is taking another step into the U.S. financial system after leading a $7 million Series A funding round for Pact Labs, a fintech company focused on modernizing payroll and payment infrastructure.
The investment, which also included participation from Blockchange Ventures and Lasagna, is centered on expanding the use of USAT, Tether’s U.S.-focused stablecoin developed for the American market.
According to Tether, improving wage payments is one of the primary goals of the partnership. The companies believe blockchain technology can help workers receive their earnings faster while allowing employers to process payroll around the clock instead of relying on traditional banking hours.
Tether Wants to Modernize Payroll
Tether CEO Paolo Ardoino said stablecoins have already helped workers in emerging markets overcome inefficient payment systems, and the company now wants to bring similar benefits to the United States.
Rather than depending on legacy banking infrastructure that processes payments in batches, USAT is designed to enable near-instant settlement at any time of day. Tether believes this could reduce costs while giving workers quicker access to their wages.
The company argues that faster payment infrastructure can especially benefit employees who rely on timely paychecks and businesses looking to streamline payroll operations.
Pact Labs Will Build the Infrastructure
Under the partnership, Pact Labs will serve as the infrastructure provider for businesses adopting USAT across payroll, payments, and credit services.
The platform is expected to help employers distribute wages 24 hours a day, seven days a week, while reducing dependence on intermediaries that can delay transactions.
Tether USAT CEO Bo Hines said the collaboration provides the payment rails needed to deliver compliant digital dollars directly to millions of American workers in a faster and more cost-effective manner.
USAT Expands Tether’s U.S. Strategy
While USDT remains the world’s largest stablecoin, it is not available to U.S. customers despite being backed primarily by U.S. dollar-denominated reserves.
To address the American market, Tether launched USAT earlier this year. The stablecoin was specifically designed to comply with the GENIUS Act, the U.S. stablecoin legislation approved by Congress.
According to Tether’s latest attestation, USAT’s circulating supply exceeded $140 million as of April, highlighting the company’s early progress in building a regulated stablecoin ecosystem for U.S. users.
The investment in Pact Labs signals that Tether is looking beyond traditional crypto trading and positioning stablecoins as practical tools for everyday financial services. If adoption continues to grow, blockchain-based payroll could become one of the first large-scale real-world use cases for regulated digital dollars in the United States.
