According to Cointelegraph, stablecoin issuer Tether has made its inaugural venture capital investment by contributing $2 million to Arcanum Capital’s Arcanum Emerging Technologies Fund II. This fund is a tokenized investment vehicle focused on decentralized Web3 projects. James McDowall, managing partner at Arcanum Capital, stated that the fund targets blockchain technologies aimed at improving remittances, cross-border payments, privacy, and banking services for the unbanked.
Tether CEO Paolo Ardoino emphasized that censorship resistance and the promotion of open communication are central goals for both Tether and the fund. He highlighted the evolving relationship between financial systems and individual freedoms, noting the increasing restrictions on open communication and the vulnerabilities exposed by geopolitical conflicts. This investment marks another step in Tether's ongoing diversification strategy.
Ardoino mentioned that diversification is a key focus for Tether, and the company plans to continue this strategy into 2025. In October, Tether proposed a boron-backed token to the Turkish government, leveraging Turkey's control over 70% of the global boron supply. Additionally, Tether completed its first energy financing deal in October, facilitating a $45 million oil transaction using its USDT stablecoin, which included transporting 670,000 barrels of crude oil from the Middle East.
Looking ahead, Tether introduced the Hadron tokenization platform in 2025, enabling businesses, asset managers, and countries to tokenize real-world assets such as government securities and stocks. On December 20, Ardoino announced Tether’s $775 million investment in the video platform Rumble, which is known for its free-speech stance. Ardoino cited Rumble’s commitment to free speech as a significant factor in Tether's decision to invest.