Over the years, Tether has become a prominent player in the cryptocurrency industry as the issuer of the USDT stablecoin. Recently, they announced their investment in Fizen Limited, a fintech company that focuses on self-custody crypto wallets and digital payments. The partnership aims to support Fizen’s development of solutions that enable stablecoin transactions for consumers and businesses, addressing the issue of financial inclusion highlighted in the World Bank’s Global Findex Report. This collaboration seeks to bridge the gap between cryptocurrency and traditional payments, allowing individuals to pay using stablecoins like USDT while merchants receive fiat settlements through QR codes, card readers, or existing financial services.
The USDT stablecoin, with a market cap of $144.5 billion and currently trading at a price of $0.9998, offers better stability compared to volatile cryptocurrencies. This investment in Fizen will enhance their blockchain capabilities, enabling the integration of stablecoins across multiple blockchain ecosystems. Users can expect more efficient ways to store, transfer, and transact using stablecoins without facing restricted access or complicated documentation requirements. Tether’s CEO, Paolo Ardoino, emphasized the significance of this investment in expanding global access to efficient and reliable digital financial solutions that promote responsible use of digital assets in everyday life. The partnership between Tether and Fizen aims to leverage stablecoin technology to address key barriers identified in the World Bank’s report, such as physical distance to financial institutions and documentation requirements for traditional banking services.
Fizen’s approach to integrating stablecoin transactions into day-to-day actions aims to resolve the challenges associated with real-world applications of stablecoins for commerce. By enabling users to pay with stablecoins while allowing merchants to receive fiat settlements through established payment rails like QR codes and card readers, Fizen eliminates the need for extra infrastructure. Market forecasts predict significant growth in QR code payments, with expectations to surpass $3 trillion and have 2.2 billion users by 2025. The increased adoption of smartphones and the convenience of making digital transactions contribute to the substantial growth of QR code payments. The partnership between Tether and Fizen follows Tether’s USDT being approved as a legal cryptocurrency in Thailand last month, signaling a positive step towards further adoption and acceptance of stablecoins in the global financial landscape.
In conclusion, Tether’s investment in Fizen Limited underscores their commitment to expanding access to digital financial solutions and promoting the informed, responsible use of digital assets. By leveraging stablecoin technology, the partnership aims to address key barriers to financial inclusion identified by the World Bank’s Global Findex Report. With the integration of stablecoin transactions into day-to-day actions, users can expect more efficient ways to store, transfer, and transact using stablecoins, while merchants can receive fiat settlements through established payment rails. The partnership between Tether and Fizen highlights the potential of stablecoins to revolutionize traditional banking services and drive real-world use cases, ultimately contributing to a more inclusive and efficient financial ecosystem.
