Tether, a major stablecoin issuer, announced a diversification strategy, investing $13.7 billion in over 120 companies.
Details of Tether’s Investment Portfolio
On July 23, Tether revealed it had invested in over 120 companies using profits earned in 2024. The total investment value reached $13.7 billion and was conducted through the company’s venture arm, excluding reserves backing USDT or other stablecoins. Tether’s CEO, Paolo Ardoino, indicated that the portfolio will continue to expand. Notable investments include companies such as Bitdeer, Crystal Intelligence, Juventus, Rumble, and Shiga Digital. Tether aims to support innovation across various sectors, including payments, artificial intelligence, agriculture, tokenization, and renewable energy.
Impact of MiCA Regulation on Tether's Strategies
Market participants speculated that the inclusion of Bitdeer reflects significant interest in Bitcoin mining. In a comment under the post on X, a user asked whether USDT would fall under the new MiCA regulation in Europe. Ardoino briefly replied that the company might reconsider its plans when the rules become safer for users and issuers. MiCA sets regulation for stablecoins and crypto assets across the European Union, focusing on consumer protection, reserve requirements, and transparent reporting from asset issuers.
Tether's Plans for Entry into the U.S. Market
In a separate development, Tether announced it would adopt a dual approach to enter the U.S. market. The company plans to launch a new stablecoin designed for domestic users while maintaining USDT through a separate legal route. This move is facilitated by the GENIUS Act, which sets federal rules for stablecoin issuers based outside the United States. Critics have raised concerns regarding Tether's ability to meet these conditions. Ardoino stated that the company is committed to achieving compliance standards and will conduct thorough audits as well as enhance anti-money laundering controls. Tether expects USDT to focus on cross-border transactions while the new coin will cater to local users.
In summary, Tether is taking proactive steps to diversify its portfolio and adapt to changing market conditions while supporting innovation and addressing new regulatory challenges.
