Tether does not promote USDT, instead invests in SQRIL! Cross-border QR payment infrastructure layout exposed

Stablecoin giant Tether invests in Southeast Asian cross-border payment startup SQRIL, but without accompanying wallet products or USDT flow-through. SQRIL focuses on building an API-based payment exchange layer that allows banking apps in different countries to scan and pay foreign QR codes directly. Users pay in their local currency, and merchants receive local currency instantly. Currently supporting the Philippines, Vietnam, and Indonesia, the entire process does not involve crypto assets.

SQRIL Positioning: The Invisible Payment Connector

SQRIL is dedicated to creating an API-based payment exchange layer that enables banking apps, e-wallets, or fintech platforms in different countries to scan and pay foreign QR codes directly. Users pay in their local currency, merchants receive local currency instantly, and currency exchange and settlement are handled entirely in the backend by SQRIL. The entire process does not involve crypto assets, nor does it require end-users to change their payment tools. Its positioning clearly leans toward financial institutions and platform providers rather than retail markets.

Unlike large payment networks, SQRIL does not issue accounts, manage user relationships, or attempt to create branded checkout experiences. Instead, it positions itself as a “neutral connector.” This low-profile positioning makes it easier to gain acceptance from banks and regulators, especially in emerging markets with strict oversight of foreign payment systems. Users interacting with SQRIL-connected payments are unaware of its presence; they only notice that their bank app can scan foreign QR codes.

This “invisible” design philosophy is similar to the underlying network logic of Visa and Mastercard. When consumers swipe a card, they see the bank’s brand, not Visa’s logo, but cross-border settlement is handled entirely within the Visa network. SQRIL aims to replicate this model in the QR code payment space, becoming an intangible bridge connecting real-time payment systems across countries.

Why Focus on Asia and Avoid Stablecoins

In many Asian countries, QR code payments have long penetrated daily life. From the Philippines, Vietnam, Indonesia to Thailand, scanning to pay is mainstream, often based on national standards supported by central banks or regulators. Similar real-time payment systems are rapidly expanding in Latin America and Africa, sometimes growing faster than credit card infrastructure.

However, these systems mostly operate smoothly within their own countries. Once cross-border consumption or travel is involved, the payment experience breaks down. A Filipino tourist cannot use GCash to scan a Vietnamese merchant’s QR code, nor can an Indonesian in Thailand pay with GoPay. SQRIL’s role is to fill this gap, quietly connecting incompatible national QR systems in the backend.

Currently, SQRIL supports QR payments in the Philippines, Vietnam, and Indonesia, and offers bank transfer services in Malaysia and Thailand. Future plans include expanding to more Asian, African, and Latin American markets, but actual success heavily depends on whether banks and wallet providers are willing to integrate its API.

Notably, SQRIL’s payment process currently shows no presence of USDT or any stablecoins. Tether’s investment appears not aimed at short-term promotion of crypto payments but at betting on the strategic value of the “payment pipeline” itself. This choice hints at deep regulatory considerations. In most Southeast Asian countries, stablecoin payments are in a gray area or explicitly prohibited. If SQRIL integrated USDT, it would face immediate regulatory resistance and lose the possibility of cooperation with banks.

Long-term Logic of Tether’s Infrastructure Layout

This aligns with Tether’s recent moves. Beyond stablecoin operations, Tether has invested in AI, data sets, and foundational tech industries, such as expanding and open-sourcing its QVAC Genesis II language model database for large language model research. Tether has also revealed exploration of a mobile wallet based on Bitcoin and USDT, designed to run AI models on-device with a non-custodial architecture.

These layouts share a common point: they do not directly compete for user attention but are positioned at the “bottom layer” of products, providing foundational capabilities for future ecosystems. SQRIL clearly fits this investment logic. Tether does not require SQRIL to generate immediate revenue or user growth but values its strategic position in the payment infrastructure layer. Once this pipeline is built and widely adopted, it provides a natural distribution channel for integrating stablecoins, tokenized assets, or data services in the future.

From a regulatory risk perspective, investing in SQRIL without pushing USDT is a smart defensive move. If Tether directly launched cross-border wallet products, it would face multiple regulatory pressures, including currency controls, AML regulations, and licensing requirements. But investing in a platform that only provides API connections, does not handle user funds, and is fully compliant through partner banks significantly disperses regulatory risks.

Three Major Challenges Facing SQRIL

Bank integration willingness: Convincing banks and wallet providers in various countries to integrate the API involves lengthy business negotiations and technical onboarding.

Fragmented regulation: Each country has different rules for settlement, foreign exchange, compliance, and transaction monitoring, exponentially increasing expansion complexity.

Competitive threats: Visa, Mastercard, and other traditional payment giants are also developing QR code interoperability, with stronger banking relationships and global clearing networks.

Can SQRIL Become the Visa of QR Payments?

Technology is not the only barrier. Payment regulation is inherently localized; each country has different rules for settlement, FX, compliance, and transaction monitoring. While SQRIL can connect systems, it cannot unify regulatory regimes. As it expands into Africa and Latin America, this complexity will only grow. Moreover, traditional payment giants like Visa and Mastercard are also deploying QR code interoperability, leveraging decades of banking relationships and global clearing networks, giving them a clear competitive advantage.

Overall, Tether’s investment in SQRIL appears more like a long-term infrastructure bet rather than an immediate crypto payment revolution. If successful, it will quietly operate within the global payment system; if it fails, it will leave no obvious consumer traces. For Tether, this may be the most ideal risk profile.