Tether led a $7 million funding round to expand USAT integration across payroll and payment infrastructure. Pact Labs will support real-time wage payments, digital wallets, and earned wage ac
Tether has led a $7 million Series A funding round for Pact Labs to expand USAT across payroll, payments, credit, and earned wage access. The investment, announced today, also included Blockchange Ventures and Lasagna. According to Tether, the funding will help integrate USAT into payroll systems used by U.S. workers and businesses through Pact Labs' financial infrastructure.
The Series A investment supports Pact Labs' development as infrastructure for USAT across multiple financial services. These include payroll, earned wage access, consumer credit, and everyday payment applications.
According to Tether, the partnership aims to integrate USAT directly into enterprise financial platforms. Pact Labs enables companies to embed digital wallets, move wages in real time, and provide financial services through its infrastructure.
The companies said the effort focuses on improving payment processing without depending on traditional payment systems. As a result, employers and financial platforms can process transactions throughout the day.
Tether noted that the U.S. payroll system processes more than $11 trillion annually. However, much of the underlying infrastructure was built decades ago. According to the company, workers often wait several days or weeks before accessing wages they have already earned.
Those payroll delays can also contribute to overdraft fees, short-term borrowing, and other financial costs. Paolo Ardoino, Tether's CEO, said transaction data has shown demand for dollar-based settlement through payroll.
He added that workers in emerging markets have long used USDT to bridge payroll gaps caused by domestic payment systems. Ardoino said Tether is now building similar capabilities for the U.S. market through USAT. He added that batch-based payroll systems continue creating unnecessary costs for workers.
Bo Hines, CEO of Tether USAT, said paychecks represent a practical use case for digital dollars. He added that Pact Labs provides infrastructure to deliver USAT directly to American workers through existing financial platforms.
According to Tether, the investment forms part of its strategy to support infrastructure for practical digital dollar applications. The company said payroll represents one of the largest financial flows in the United States, creating opportunities to integrate stablecoin technology into everyday financial activity.
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