Tether has announced an ambitious investment plan of over $1 billion through its venture capital arm within the next year. Tether is thus expanding its financial commitment to promoting innovation in the areas of alternative financial infrastructures, artificial intelligence and biotechnology.
The company’s investment arm, Tether Investments, has already invested around $2 billion in these areas over the past two years and continues to review hundreds of new offerings every month.
Tether’s plan focuses on financial infrastructure, AI and biotechnology
Tether Holdings Ltd., the company behind the world’s largest stablecoin USDT, plans to invest more than 1 billion USD within the next year through its venture capital arm. Chief Executive Officer Paolo Ardoino revealed this ambitious plan in an interview with Bloomberg, highlighting Tether’s growing financial influence and strategic focus on emerging technologies and markets.
Tether Investments, the company’s investment arm, currently has a 15-person team that reviews hundreds of pitches each month, mostly from startups, and is focused on alternative financial infrastructure for emerging markets, artificial intelligence and biotechnology, according to Ardoino. Over the past two years, Tether has already invested around $2 billion in these areas, which shows Tether’s growing ambitions and financial capabilities. The stablecoin USDT, which is designed to track the U.S. dollar one-to-one, has a market capitalization of around $112.4 billion.
Recently, Tether has invested much of the reserves that back USDT in U.S. Treasury bills and other securities, earning billions of dollars in profits in the current high-yield environment. While Tether plans to retain 100% of its reserves plus an additional 6% cushion from its profits to ensure smooth redemptions of USDT, the company also intends to put some of its remaining profits into strategic investments, with a key part of that strategy being to invest in infrastructure in emerging markets to improve its distribution network.
In addition, Tether has invested more than $1 billion in artificial intelligence and supported, among others, data center operator Northern Data Group.
“We can offer AI computing to all the companies we have invested in. It’s about investing in technologies that help disintermediation with traditional finance. Less dependence on the big technology companies like Google, Amazon and Microsoft.”
According to the published certification, Tether made a profit of $4.5 billion in the first quarter of this year . Although these third-party certifications are not equivalent to a full financial audit, they provide a snapshot of the company’s financial health. Despite past and current regulatory investigations into the quality and liquidity of the reserves that back stablecoins like USDT, Tether has managed to maintain its peg to the U.S. dollar without major disruption.Ardoino emphasized the impact of these profits on Tether’s investment opportunities. He said,
“You can imagine that the news that Tether was making good money went around the world.”
Is fuhr fast:
“We get dozens or hundreds of deals on the table every month and only a very small percentage of them come to fruition.”
Tether Recent Investments
Tether has invested 18.75 million USD in XREX Group to enhance cross-border payments and foster financial inclusion in emerging markets.
Tether recently invested 18.75 million USD in XREX Group to promote financial inclusion and improve cross-border payments in emerging markets. This investment, backed by notable investors such as the Taiwanese government’s National Development Fund and SBI Holdings, aims to introduce innovative financial solutions and drive advancements in regulatory technology. The collaboration with XREX also aims to strengthen regulatory technology (RegTech) to detect and prevent the illegal use of stablecoins, which is in line with Tether’s compliance initiatives.
Tether also recently invested $200 million in Blackrock Neurotech, a leading biotech company specializing in brain-computer interface (BCI) technology, through its new venture division Tether Evo.
With this strategic move, Tether becomes the majority shareholder of Blackrock Neurotech, which aims to develop medical solutions for people suffering from paralysis, neurological disorders and loss of function.
This move is part of Tether’s broader strategy, which includes the recent restructuring into four business units that has enabled the company’s impressive growth and financial stability.
Despite market and regulatory challenges, Tether remains dominant with a significant market share and a market capitalization of more than 100 billion USD.
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