Tether & Gnosis Back Sorted Wallet’s $4.4M Seed Round for Global Stablecoin Push

Tether and Gnosis Co-Lead $4.4M Seed Round for Sorted Wallet

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Sorted Wallet secures funding to expand blockchain-based payment infrastructure globally

Tether and Gnosis lead the seed funding round, driven by growing demand for stablecoins in emerging markets

Stablecoin transfer volumes reach $33 trillion, pushing major firms to build infrastructure for underbanked populations

Sorted Wallet recently secured $4.4 million in seed funding. This investment comes as companies dealing with stablecoins are working to broaden their services beyond just cryptocurrency trading, aiming to establish blockchain-based digital dollars as a common way to pay for things.

Sorted recently secured new funding led by Tether and Gnosis, with additional investment from Movement Labs, Angel Invest, and investors from RWA.io. The round includes $3.4 million in equity funding from these groups, and an additional $1 million in support from Vox Solutions, a telecommunications company, to help Sorted improve its connections with mobile carriers.

I’m excited to see Tether is investing in Sorted again! They originally backed them back in September 2024 with a $1.5 million pre-seed round. It’s really promising to see Sorted’s wallet already being downloaded over 500,000 times in 160 countries – especially in places like Nigeria, Kenya, Tanzania, and Bangladesh. That kind of adoption is a good sign.

Stablecoins move beyond trading into payments

This funding arrives as stablecoins are becoming more widely used for things like sending money internationally, business payments, savings accounts, paying employees, and settling transactions across borders.

Industry experts estimate that stablecoin transfers totaled over $33 trillion worldwide in 2025, showing they’re being used for more than just crypto trading.

Unlike cryptocurrencies like Bitcoin that can change value quickly, stablecoins are designed to maintain a steady value because they’re linked to traditional currencies like the US dollar. Because of this stability, they’re becoming popular as a blockchain-based way to make payments, offering an alternative to systems like credit cards and bank transfers.

Big companies in both the crypto and traditional finance worlds are now racing to create the basic technology for handling these kinds of transactions. This includes things like digital wallets, systems for finalizing payments, converting deposits into digital tokens, and networks for sending money internationally. Even Tether, the company behind the most popular stablecoin USDT (worth $185 billion), is focusing on building wallet technology for people who don’t have access to traditional banking services.

Built for feature phones and emerging markets

Sorted explained that its platform is built for people who are often left out by traditional banks and financial technology companies, particularly in areas where most people access the internet using basic feature phones.

This wallet app works on all kinds of phones – even basic feature phones and smartphones. It’s lightweight, taking up less than 10MB of space, and gives you complete control of your funds.

According to Tether CEO Paolo Ardoino, digital assets have grown beyond just being used for trading. They now have practical, everyday uses that are helping to create more financial freedom and access for everyone.

He also explained that expanding financial inclusion means reaching “hundreds of millions of people who can’t afford smartphones or data access.”

Many people are already using stablecoins to send money home, save funds, and pay suppliers, especially in countries with high inflation, limited banking services, or unstable currencies.

Competition expands across mobile finance

This move also means stablecoin companies are increasingly competing with established fintech and mobile money services in regions like Africa and South Asia.

In many developing countries, mobile payment systems like those offered by phone companies and banking apps are now the most popular way to send money to each other and pay businesses.

Stablecoin companies contend that using blockchain technology for money transfers can reduce costs, allow for instant transactions around the clock, provide access to dollars, and make international payments more seamless.

This industry is increasingly focused on people and businesses that traditional banks often overlook, such as migrant workers, freelancers, small business owners, and those who prefer using mobile devices for their financial needs.

Asia’s stablecoin competition intensifies

Growth in the overall market is happening at the same time as Asian fintech and cryptocurrency companies are increasingly working to create stablecoin payment systems across the region.

I recently read a report by Edul Patel that really highlighted the hurdles to making stablecoin payments widely used in Asia. It basically laid out all the operational difficulties, the issues with ensuring enough liquidity, and the compliance headaches that need to be solved if stablecoins are going to take off over there. It’s a good reminder that it’s not just about the tech, but also about building a solid infrastructure and navigating regulations.

According to Patel, competition to build stablecoin systems in Asia is picking up speed. Countries that don’t quickly establish clear rules and connect these systems to existing payments risk being left behind by new blockchain-based financial technologies.

The report examined how to handle payments across borders, meet regulatory requirements, manage funds effectively, and build the necessary systems to widely use stablecoins throughout the region.

Tether deepens infrastructure investments

This investment helps Tether continue building out its stablecoin technology and blockchain payment systems, with plans for further growth in 2026.

Tether recently helped fund a $134 million initiative to improve the global network for stablecoins, following a year where stablecoin transactions totaled over $33 trillion.

The company contributed to a $5.2 million investment in Ark Labs, which is working on making stablecoin transactions on Bitcoin more flexible and efficient.

Recent reports indicate that Tether is seeking new funding, potentially valuing the company at around $500 billion.

Regulatory and adoption challenges remain

Even though stablecoins are becoming increasingly popular, their widespread use is still held back by challenges related to regulations, security, and the underlying technology. Governments around the world are still working on rules covering things like how stablecoins are backed, who can issue them, preventing illegal activity, protecting consumers, and allowing them to work across different countries.

Regulators and users are still worried about security problems like how wallets are managed, scams, phishing, and illegal financial activity.

For stablecoins to become widely used, they need to work together smoothly with things like phone companies, stores, banks, and current payment methods.

According to Stephen Browne, CEO of Sorted Wallet, developing countries represent the biggest future opportunity for finance using blockchain technology.

Three years ago, we created a mobile wallet for very affordable phones – something no one else was focusing on at the time, according to Browne. This new funding will help us reach the next 100 million users.

2026-05-20 14:51