Tether Investments participated in a $39 million Series A round for Pave Bank — the first bank combining traditional finance with digital assets. The round was led by Accel, with participants including Wintermute, Quona Capital, and Helios Digital Ventures.
A new generation bank
Pave Bank positions itself as ‘the first programmable bank for the era of digital assets and artificial intelligence.’ Its clients will be able to manage fiat and digital assets in real time, automate treasury operations, and reduce dependence on intermediaries.
The bank is licensed in Georgia and plans to use the raised funds to expand its regulatory presence, accelerate product development, and scale its infrastructure. According to co-founder and CEO Salim Dhanani, Pave Bank’s goal is to become a bridge between the traditional and on-chain economy.
‘The global financial system is moving towards regulated on-chain finance. Institutions need a reliable bridge between the old and new worlds,’ Dhanani noted.
Tether’s participation and strategic interest
Tether, which is earning record profits from the issuance of the USDT stablecoin, is actively diversifying its investments. The company’s portfolio already includes projects in payment infrastructure, artificial intelligence, agrotechnology, and renewable energy.
Investments in Pave Bank fit into Tether’s strategy to strengthen its influence in the field of regulated finance. This approach allows the company to promote stablecoins in the institutional segment, where compliance with regulatory requirements plays a key role.
The merger of traditional and digital
Pave Bank is building a full-reserve banking model, excluding the use of client funds for lending. Instead, it offers programmable functions that allow companies to independently manage cash flows, perform automatic settlements, and integrate digital assets into treasury operations.
Quona Capital partner Ganesh Rengaswamy noted that ‘the programmable model and full-reserve approach combine the best of traditional banking and digital assets.’ According to him, such an architecture can accelerate the adoption of stablecoins and increase access to financial services in developing countries.
What’s next?
Pave Bank intends to expand its presence in key markets in Europe and Asia, as well as develop solutions for corporate clients integrating blockchain and fiat operations. For Tether, this is an investment not only in infrastructure but also in the future formation of bridges between centralized banks and on-chain finance.
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