Tether (USDT) Announces $1 Billion Investment

Tether, a major cryptocurrency company, plans to invest over $1 billion in various deals next year, according to the statement made by its CEO Paolo Ardoino.

The company's investment division, Tether Investments, currently has a rapidly expanding team of 15 people who evaluate hundreds of applications each month. Most of these applications come directly from startups. The company's investment focus includes alternative financial infrastructure, artificial intelligence and biotechnology for emerging markets. These are the areas in which it has invested approximately $2 billion in the last two years.

This investment plan is an indication of the growing financial influence and ambition of Tether, which has issued the world's largest stablecoin. Tether's USDT stablecoin, which tracks the dollar, has a market value of approximately $112.4 billion.

The company has recently been investing most of the reserves backing USDT in U.S. Treasury bills and other securities. This strategy has generated billions of dollars in profits in the current high interest rate environment.

While Tether plans to maintain 100% of its reserves, with an additional 6% support from its profits to ensure smooth redemption of USDT, it also expects to invest some of its remaining profits in deals. To expand its distribution network, the company is investing in infrastructure in emerging markets. It has also invested over $1 billion in artificial intelligence by backing data center operator Northern Data Group.

“We can offer AI computing to all the companies we invest in. It's all about investing in technology that helps disintermediate traditional finance. We rely less on big tech companies like Google, Amazon and Microsoft,” Ardoino said. said.

Unlike traditional venture capitalists, Tether does not invest in companies that are expected to reach certain profitability targets within the next one to two years. “Our investment policy is to invest only in projects that we find extremely interesting,” Ardoino said.

Tether is also investing in biotechnology, such as backing brain-computer interface technology maker Blackrock Neurotech.

*This is not investment advice.