Stablecoin giant Tether plans to invest $1 billion in emerging markets

Source: Blockchain Knight

Stablecoin issuer Tether and its investment arm Tether Investments recently revealed that it plans to allocate more than $1 billion in funds to various investment opportunities in the next 12 months.

Paolo Ardoino, the CEO behind the USDT stablecoin, shared insights into the company's next investment strategy and focus areas in a recent interview, according to Bloomberg.

The company is particularly interested in alternative financial infrastructure, artificial intelligence (AI) and biotechnology in emerging markets, with investments of about $2 billion in these areas, the report said.

Tether invests most of the reserves backing USDT in U.S. Treasuries and other securities. In the current high-interest environment, this strategy has brought considerable profits.

While Tether remains committed to retaining 100% of its reserves and setting aside an additional 6% buffer from profits to ensure USDT redemptions, the company plans to allocate part of the remaining profits to investment opportunities.

In the interview, Ardoino emphasized the company's focus on expanding its distribution network and investment infrastructure in emerging markets.

Currently, the company has allocated more than $1 billion for artificial intelligence initiatives, including support for data center operator Northern Data Group.

Ardoino said Tether's investment aims to use technology to promote the disintermediation of traditional finance and reduce dependence on large technology companies such as Google, Amazon and Microsoft.

In addition, the company's CEO also emphasized that Tether's profitability has attracted many potential investment opportunities worldwide, and the company receives "dozens or even hundreds" of suggestions every month. However, Tether has only selected a small number of opportunities.

Stablecoins face regulatory challenges worldwide, and Tether has recently been working to diversify beyond stablecoins, making the company an important transaction maker.

According to relevant reports, Tether was reorganized into four departments in April this year, focusing on finance, data, BTC mining, energy and education.

In addition, the stablecoin issuer also plans to launch a platform later this year that will enable companies to issue bonds and stocks in the form of digital tokens, while also providing central banks with the ability to issue central bank digital currencies (CBDCs).

Ardoino explained that Tether's investment approach differs from traditional venture capital firms because it doesn't just look for companies that are expected to achieve profitability targets in the next one or two years. Instead, Tether invests in projects it deems "particularly compelling" and in line with its strategic vision.

In addition to its interest in artificial intelligence and emerging markets, the company is also reportedly involved in the field of biotechnology. In particular, it has backed Blackrock Neurotech, a company specializing in brain-computer interface technology.

Ardoino said Tether is willing to invest in the field at a time when other companies are scaling back their investments in the biotechnology field.