Pact Labs Raises $7M in Series A Funding Led by Tether 

The company will use the funding to expand its infrastructure and bring USA₮, a U.S. dollar-backed stablecoin developed in collaboration with Tether and issued by Anchorage Digital Bank, to payroll, earned wage access, lending, and payment services for millions of workers across the United States.

Pact Labs develops the wallet, payment, data, and smart contract infrastructure that connects the PACT Protocol with fintech companies and their customers. Its technology has supported more than $1.9 billion in credit across emerging markets and now powers compliant on-chain payroll solutions through partnerships with Payactiv and Tether's USA₮.

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Much of the US payroll system still relies on outdated technology which often forces workers to wait days or even weeks to access the money they have already earned. This delay has contributed to billions of dollars in overdraft fees each year.

PACT aims to modernize payroll by using blockchain technology to make wage payments faster, enable programmable financial services, and support 24/7 payments. The company says its partnership with Tether will help make USA₮ a practical digital dollar for everyday payroll use.

Using its software development tools (SDKs), Pact Labs has already launched hundreds of thousands of embedded wallets and enabled live stablecoin payroll payments across enterprise platforms. The company also plans to announce more partnerships in the near future.

"USA₮ was built to serve real people, and nothing is more real than a paycheck," said Bo Hines, CEO of Tether USA₮. "Pact Labs gives us the rails to put digital dollars designed to be compliant with U.S. regulations directly into the hands of millions of American workers — faster, cheaper, and without the intermediaries that slow them down."

About Pact Labs

Founded in 2023, Pact Labs develops the technology behind the PACT protocol and its consumer products. The company builds wallet, payment, data and smart contract infrastructure that helps fintech companies connect the PACT protocol with their customers.

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