Tether is actively expanding its investments beyond the crypto industry as its reserves grow to $7 billion. The company aims to mitigate risks associated with its USDT token.
Tether’s Growing Financial Power
Tether, the $140 billion issuer of the stablecoin USDT, is planning to extend its investments beyond the crypto space. The company’s financial muscle is growing, allowing it to make investments outside the industry.
Challenges with MiCA and Stablecoin Diversion
In Europe, Tether faces compliance challenges with the new MiCA regulatory regime. Major crypto exchanges, including Coinbase, Kraken, and Crypto.com, plan to remove USDT from their offerings to comply with the new regulations.
New Investment Directions and Development Model
Following a diversification model akin to natural resource states, Tether is investing beyond the crypto industry. Among new projects are a $775 million stake in the social platform Rumble and projects in Europe, such as investment in the startup StablR.
Revenue from diverse investments strengthens Tether amid increasing competition and changing regulatory requirements.
