Tether-Backed Mansa Raises $10M to Revolutionize Cross-Border Payments with Stablecoins

The stablecoin industry is seeing growing institutional interest, and the latest funding round for Mansa, a fintech startup utilizing stablecoins for cross-border transactions, is a prime example. On February 20, 2025, Mansa secured $10 million in total funding, with Tether leading a $3 million pre-seed round and Polymorphic Capital co-leading the investment.

This signals Tether’s deeper push into real-world financial applications and further validates stablecoins as an alternative to traditional payment networks like SWIFT and Visa. Let’s break down what Mansa is building, why Tether is betting on it, and what this means for the broader crypto ecosystem.

Mansa’s $10M Funding: A Breakdown

Mansa’s funding round consists of two key components:

1. $3M Pre-Seed Round (Equity Investment)

• Led by: Tether, issuer of USDT (the world’s largest stablecoin by market cap, currently $141.78 billion).
• Co-led by: Polymorphic Capital, a VC firm specializing in blockchain innovation.
• Other investors: Octerra Capital, Faculty Group, Trive Digital.

2. $7M Liquidity Funding (Institutional Financing)

• Raised from corporate entities, quantitative funds, and alternative investment firms.
• This funding will provide operational liquidity for Mansa’s stablecoin-based infrastructure, ensuring smooth transactions for businesses relying on Mansa for cross-border payments.

With this backing, Mansa is positioned to expand rapidly, focusing on Latin America, Africa, and Southeast Asia—regions where traditional payment systems are inefficient and costly.

How Mansa is Using Stablecoins for Cross-Border Payments

Mansa’s core innovation lies in leveraging stablecoins (primarily USDT) for instant, low-cost transactions. Here’s how it works:

1. Eliminating Pre-Funded Bank Accounts

Traditional cross-border payments require providers to pre-fund local bank accounts in destination countries, which is costly and inefficient. Mansa removes this barrier by allowing businesses to use stablecoins like USDT for instant settlement.

2. Providing a Revolving Line of Credit in Stablecoins

Instead of requiring large cash reserves, Mansa offers a stablecoin-based liquidity solution, allowing payment providers to settle transactions in real time without tying up capital.

3. Enabling Instant, Low-Cost Transfers

• Transaction speed: Settlements occur in seconds, compared to the 2-5 days required for SWIFT transfers.
• Cost savings: By using blockchain rails, Mansa significantly reduces transaction fees, benefiting businesses and consumers alike.

4. Supporting High-Growth Emerging Markets

Mansa has already processed over $27 million in transactions since launching in August 2024, with $11 million recorded in January 2025 alone—a 574% growth from its launch month.

The company is actively building partnerships with payment providers across Africa, Latin America, and Asia, regions where stablecoins are increasingly being used as alternatives to volatile local currencies.

Why Tether is Investing in Mansa

Tether’s $3 million equity stake in Mansa is part of a broader strategy to solidify USDT’s dominance in the stablecoin market.

1. Strengthening USDT’s Real-World Use Cases

• USDT is already the most traded stablecoin, but its use has been primarily in crypto trading.
• By backing Mansa, Tether is expanding USDT’s role into real-world payments, remittances, and financial infrastructure.

2. Dominating the Stablecoin Market

Tether currently commands over 70% of the stablecoin market (per DefiLlama data). However, competition from USDC (backed by Coinbase) and PayPal’s PYUSD is intensifying. Supporting Mansa strengthens USDT’s position as the go-to stablecoin for payments.

3. Strategic Expansion Beyond Crypto Trading

Tether’s recent investments suggest a broader expansion strategy:

• 2025 Acquisitions: Stake in Juventus, investment in Zengo (multichain wallet), and headquarters relocation to El Salvador.
• Mansa fits into this strategy as a proof-of-concept for USDT’s scalability in real-world finance.

Tether CEO Paolo Ardoino commented on the deal, stating:

“Mansa’s vision for solving liquidity challenges in cross-border payments aligns with our mission to create a more efficient and inclusive financial system.”

This suggests Tether views Mansa not just as an investment but as a key player in expanding USDT’s utility.

Stablecoins Are Reshaping Global Finance

You highlighted growing institutional interest in stablecoins, and this funding round proves it. Here’s the bigger picture:

1. Stablecoins Now Compete with Visa & Mastercard

• ARK Invest’s 2025 report states stablecoins processed $15.6 trillion in transaction volume in 2024—outpacing Visa (+119%) and Mastercard (+200%).
• This signals a major shift toward blockchain-based financial rails.

2. Institutional Adoption is Accelerating

• PayPal, Nubank, and now Mansa are integrating stablecoins into their fintech platforms.
• The $10 million backing from institutional investors shows confidence in this trajectory.

3. Favorable Regulatory Climate

• The Trump administration’s pro-crypto stance and the SEC’s relaxed enforcement (e.g., Ripple, Kraken cases) create a favorable environment for stablecoin innovation.
• In emerging markets, stablecoins are already being used as inflation hedges and remittance tools.

Implications: What’s Next for Mansa & Tether?

For Mansa:

• Expand into Latin America & Southeast Asia, targeting businesses needing faster cross-border payments.
• Develop new liquidity tools to support scalable stablecoin transactions.

For Tether:

• Success with Mansa could solidify USDT as the go-to stablecoin for payments.
• Competing with USDC and PYUSD in mainstream financial applications.

For the Crypto Market:

• Stablecoins are now a serious alternative to traditional banking rails.
• This could pressure banks to innovate or risk losing market share to blockchain-based solutions.

Final Thoughts: A Major Step for Stablecoin Adoption

Mansa’s $10 million funding round, with Tether’s $3 million pre-seed investment, is more than just another fintech deal—it’s a signal that stablecoins are reshaping global payments.

With real-world use cases growing and institutional backing increasing, stablecoins are no longer just for crypto traders—they’re becoming a core part of the future financial system.

The question is: Will banks adapt—or be disrupted?