Sorted Wallet has raised $4.4 million in seed funding as stablecoin firms race to expand beyond crypto trading and position blockchain-based dollars as mainstream payment infrastructure.
According to the announcement, the round was led by Tether and Gnosis, with participation from Movement Labs, Angel Invest, and angel investors connected to RWA.io. The funding includes $3.4 million in equity from Tether, Gnosis, and the other participants, plus $1 million in strategic support from Vox Solutions, a telecommunications infrastructure provider whose backing is specifically aimed at strengthening Sorted’s mobile-operator integrations.
This is a follow-on investment from Tether, which previously backed Sorted’s $1.5 million pre-seed round in September 2024. The company said the wallet has already surpassed 500,000 downloads across 160 countries, including Nigeria, Kenya, Tanzania, and Bangladesh.
Stablecoins move beyond trading into payments
The funding comes amid a broader industry shift as stablecoins increasingly move into remittances, merchant payments, savings, payroll, and cross-border settlement.
Stablecoin transfer volumes surpassed $33 trillion globally in 2025, according to industry estimates, reflecting growing use beyond speculative crypto activity.
Unlike volatile cryptocurrencies such as Bitcoin, stablecoins are pegged to fiat currencies and are increasingly being positioned as blockchain-based alternatives to traditional payment rails.
Major firms across crypto and traditional finance are now competing to build the infrastructure layer for these transactions, including wallets, settlement systems, tokenised deposits, and cross-border payment networks. Tether itself, the issuer of the current largest stablecoin USDT with $185 billion in market cap, has made wallet infrastructure for underbanked populations a strategic priority.
Built for feature phones and emerging markets
Sorted said its platform was specifically designed for users often excluded from traditional banking and fintech systems, especially in regions where feature phones remain the primary internet device.
The wallet works on both feature phones and smartphones, requires less than 10MB of storage, and is built around self-custody functionality.
“Over the years, digital asset use cases have evolved from trading tools to real-life applications, promoting financial freedom and inclusion,” said Paolo Ardoino, CEO of Tether.
He added that financial inclusion will require reaching “hundreds of millions of people who cannot afford smartphones or data plans.”
Sorted said many users already rely on stablecoins for remittances, savings, and supplier payments in countries facing inflation, banking limitations, or currency instability.
Competition expands across mobile finance
The push also places stablecoin firms in growing competition with traditional fintech and mobile money platforms operating across Africa and South Asia.
Mobile payment ecosystems such as telecom-led wallets and digital banking apps already dominate many emerging markets, particularly for domestic transfers and merchant payments.
However, stablecoin companies argue blockchain-based systems can offer lower-cost cross-border transfers, 24/7 settlement, dollar access, and greater interoperability across countries.
The sector is also increasingly targeting users underserved by conventional banking infrastructure, particularly migrant workers, freelancers, small businesses, and mobile-first consumers.
Asia’s stablecoin competition intensifies
The broader market expansion also comes as Asian fintech and crypto firms accelerate efforts to build regional stablecoin payment infrastructure.
Earlier this month, Edul Patel released a stablecoin strategy report outlining operational, liquidity, and compliance challenges tied to scaling stablecoin payments across Asia.
Patel said Asia’s stablecoin infrastructure race is accelerating rapidly, while countries that delay regulatory clarity and payment integration risk falling behind emerging blockchain-based financial networks.
The report focused on cross-border settlement systems, compliance hurdles, liquidity management, and infrastructure requirements needed to support large-scale stablecoin adoption across the region.
Tether deepens infrastructure investments
The investment also adds to Tether’s broader expansion across stablecoin infrastructure and blockchain payments in 2026.
Earlier this year, Tether backed a $134 million raise focused on expanding global stablecoin infrastructure, as stablecoin transaction volumes surpassed $33 trillion in 2025.
The company also invested in Ark Labs through a $5.2 million funding round aimed at supporting programmable stablecoin transactions and settlement on Bitcoin.
At the same time, reports recently suggested Tether was pursuing a funding round that could push the company’s valuation toward $500 billion.
Regulatory and adoption challenges remain
Despite rapid growth, stablecoin adoption still faces regulatory, security, and infrastructure hurdles. Governments globally continue debating rules around stablecoin reserves, licensing, anti-money laundering compliance, consumer protections, and cross-border interoperability.
Security risks tied to wallet management, scams, phishing attacks, and illicit finance also remain ongoing concerns for regulators and users.
At the same time, mainstream adoption may depend on whether stablecoin platforms can integrate more seamlessly with telecom operators, merchants, banks, and existing payment systems.
Stephen Browne, CEO of Sorted Wallet, said the company sees emerging markets as the next major frontier for blockchain-based finance.
“Three years ago we built a wallet for a $20 phone. Nobody else thought it was worth building for,” Browne said. “This round is how we find the next 100 million.”
Also read: AIB Joins 37-Bank European Consortium Developing Euro Stablecoin
