Tether to Invest $1B Within 12 Months as Stablecoin Business Profit Soars

Tether, the issuer of the stablecoin USDT has disclosed its plans to invest more than $1 billion into deals over the next 12 months via its investment arm, Tether Holdings Ltd. This strategic move will be focused on alternative financial infrastructure for emerging markets such as the artificial intelligence and biotech sectors. 

Tether to Invest More Than $1 Billion 

Tether Chief Executive Officer Paolo Ardoino shared in an interview that the firm has a growing team of 15 people focused on evaluating hundreds of pitches each month, primarily from startups. He also mentioned that the company is focused on areas where it has already spent about $2 billion over the past two years.  

“Tether is becoming a major deal maker as part of a broad effort to expand its business beyond stablecoins, which have been facing regulatory headwinds worldwide. In April, it split into four divisions focused on finance, data, Bitcoin mining and energy, and education. Later this year, it’s also planning to launch a platform on which companies will be able to issue bonds and equity in digital-token form and central banks will be able to offer central-bank digital currencies,” Ardoino said.

Tether’s recent investment plan highlights the firm’s commitment and ambition as a stablecoin issuer. Tether’s USDT stablecoin which is designed to track the dollar one-for-one has a market capitalization of about $112.4 billion.

Tether’s Strategic Investments 

Recently, Tether has increased its exposure to U.S. Treasuries by investing most of its reserves and other securities. This move has brought the firm billions of dollars in profits during the current high interest-rate environment. According to its Q1 attestation report, the company’s direct and indirect ownership of U.S. Treasuries is at over $90 billion.

To ensure the smooth redemptions of USDT, Tether plans to continue to keep 100% of its reserves, and an additional% cushion taken out of its profits. Notably, Ardoino mentioned the company’s expectation to invest a percentage of its remaining profits into deals. 

To demonstrate its keen interest in emerging markets, the company has already invested more than $1 billion into artificial intelligence, such as by backing data-center operator Northern Data Group.

“We can offer AI computing to all the companies we have invested in,” Ardoino said adding that “It’s all about investing in technology that helps with disintermediation with traditional finance. Less reliance on the big tech companies like Google, Amazon and Microsoft.”