Tether’s strategic focus on AI and biotech reflects its commitment to innovation and market expansion.
Tether is set to channel over $1 billion into various deals within the coming year, as revealed by CEO Paolo Ardoino in a Bloomberg interview. Through its venture arm called Tether Investments, the company will focus on alternative financial infrastructure, artificial intelligence (AI), and biotech.
Notably, Ardoino revealed that Tether Investments’ team is already actively evaluating a multitude of startup pitches each month. The company’s investment strategy is part of its broader ambition to diversify beyond its stablecoin, the Tether USD (USDT), which is pegged to the dollar and boasts a $112.4 billion market cap.
The firm’s investment spree, totaling about $2 billion in the past two years, aligns with its goal to build financial clout in emerging markets and reduce dependency on major tech corporations. Tether’s profits, bolstered by high interest rates, have allowed significant investments in US Treasury bills and other securities. Ardoino emphasized the strategic investment in technology that facilitates disintermediation in traditional finance.
“We can offer AI computing to all the companies we have invested in,” Ardoino said. “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.”
Despite past regulatory settlements, Tether’s USDT has maintained a stable one-to-one peg with the dollar. The company’s profitable streak, with a $4.5 billion profit reported in the first quarter, has positioned it as an influential dealmaker. Tether’s future plans include a digital platform for bonds and equity issuance and support for central-bank digital currencies, further expanding its reach beyond stablecoins.