Latin America chooses stablecoin as a cover for inflation

Tether partnered with Orionx, a Chile-based crypto company, to advance crypto adoption in Latin America. According to Chain Analysis, Orionx operates in Chile, Peru, Colombia, and Mexico, countries with a huge unbanked population and $415 billion in capital in crypto transactions annually. 

Tether CEO Paolo Ardoino said that Orionx’s series A round close supported a high-impact company and advancement towards their broader vision of making stablecoin-powered financial tools accessible to underserved communities across the region. 

Latin America chooses stablecoin as a cover for inflation 

Stablecoins such as USDC and USDT have gained traction in Latin America, where people have increasingly sought ways to hold and grow their savings. USD yield products offered interest on dollar-denominated assets, but recently, the rule changed, requiring complex regulations to be met before establishing a banking infrastructure. 

💲 Tether announces strategic investment in Orionx exchange to advance digital asset adoption across Latin America

— Daniel Joseph  (@Heisprimedaniel) June 3, 2025

According to the Chain Analysis report, Argentina was ranked 14th among the top 20 countries globally seeking cryptocurrency adoption. The country received an estimated $91 billion in crypto transactions, just ahead of Brazil’s $90.3 billion in 2024. Stablecoins accounted for 61.8% of all crypto activities in Argentina and 59.8% in Brazil, which is above the global average of 44.7%

Latin American countries experienced inflation in fiat currencies quickly after a study by Chain Analysis revealed that between July 2023 and June 2024, the region received $415 billion in cryptocurrency transactions. According to the report, the spike in crypto adoption is attributed to the high inflation experienced in the area. 

Argentina and Brazil have experienced high debt issues, leading to a spike in inflation rates. People in these countries constantly seek ways to protect their funds from inflation. According to Tether, businesses in the region are quickly adapting to crypto-based investments due to a lack of clear regulations and a need for cheaper international money transfer options.

Chain analysis revealed that Latin America had the highest number of adults without access to traditional banking. It cited paperwork requirements, distance, and high fees as the common reasons people do not open bank accounts. Joel Vainstein, Orionx’s CEO, said Orionx stablecoin saw the need and aimed to fill the gap.

Orionx backs local Fiat ramps, low-cost money transfers, and stablecoin settlements. Its remittance as a service model allows businesses to offer fast, affordable cross-border payments without relying on banks. According to Tether’s CEO, the company has invested in technologies and teams that deliver real-world value by expanding financial inclusion.

Joel Vainstein said the partnership with Tether was a turning point. He cited a growing demand from businesses for faster and cheaper payment solutions and added that the partnership would help them scale faster with more flexible tools for the region. 

Tether demonstrates commitment to innovation in Latin America

Tether says it aims to lead the development of open-source multimodal AI models, drive innovation and accessibility, and lead collaborations that integrate AI solutions into market-driven products. Paolo Ardono, CEO of Tether, said that Artificial intelligence stood to revolutionize almost every aspect of human life, both in the real and digital worlds. 

Ardoino added that the partnership established a new division within Tether that redefines AI boundaries and democratizes privacy. He welcomed the opportunity for passionate individuals and businesses to explore opportunities on Tether’s career page.

According to the Chain analysis report, Brazil’s institutional activity declined in early 2023. The report suggested that the activity has since reversed and increased dramatically. For instance, institutional-sized transactions valued over $1 million increased by approximately 29.2% between the last two quarters of 2023 and approximately 48.4% between Q1 and Q4 of 2024.

Andre Portilho, Head of Digital Assets at BTG Pactual investment bank, said the key factor driving institutional activity in the region was portfolio diversification, particularly when the market matured. He added that investors increasingly integrated digital assets into their asset allocation strategies, seeing them as an alternative for potential enhanced returns.

Portilho said the most notable recovery event of the institution’s activity in Brazil was attributed to the regulatory evolution and entry of American institutions such as the Ethereum and Bitcoin ETFs into the cryptocurrency market.  

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