USDT issuer Tether will allocate over $1 billion to distribute to startups from “hundreds of venture capital offerings.” Paolo Ardoino spoke about this in an interview with Bloomberg CEO.
According to the top manager, the firm is focused on alternative financial infrastructure for emerging markets, artificial intelligence and biotechnology. Over the past two years, Tether has already invested about $2 billion in these areas.
According to him, Tether is not looking for companies that must achieve certain profitability targets in the next one or two years. This distinguishes it from classic venture funds.
Tether invests most of the reserves backing USDT in US Treasury bills and other securities, generating billions of dollars in profits in the current high rate environment
In the first quarter of 2024, the company's net profit amounted to $4.2 billion. The issuer received about $1 billion from operating profits, mainly as interest income from obligations of the US Treasury. The remaining part of the net profit (~$3.5 billion) is due to the increase in the value of positions in Bitcoin ($3.65 billion) and gold ($5.7 billion).
According to Ardoino, the company plans to continue to maintain 100% of its reserves, as well as an additional cushion of 6% of profits, to ensure smooth redemption of USDT. The rest should be used for transactions.
To expand its distribution network, Tether is investing in infrastructure in emerging markets. In addition, the USDT issuer has already invested more than $1 billion in artificial intelligence, in particular by supporting data center operator Northern Data Group.
Tether's CEO recalled plans to launch a platform later this year on which companies will be able to issue bonds and shares in the form of digital tokens, and central banks will be able to offer CBDC.
Let us recall that in April Tether announced the reorganization of its structure into four divisions in order to enter other areas besides “stablecoins”.
