Tether Holdings Ltd. is expected to invest more than $1 billion in innovative projects next year, significantly expanding its operations. Tether CEO Paolo Ardoino said the company will focus on areas such as financial infrastructure in emerging markets, artificial intelligence (Al) and biotechnology.
Investment strategy and diversification
Tether will invest heavily in infrastructure in emerging markets to enhance its distribution network. These investments help Tether diversify its portfolio beyond its core cryptocurrency products, especially the USDT stablecoin.
Despite facing many regulatory challenges, Tether has maintained the stability of its USDT stablecoin, ensuring its value is always on par with USD. The company commits to holding 100% reserves, with an additional 6% reserve from profits to ensure repayment.
In the first quarter, Tether reported impressive profits of $4.5 billion. While these reports are not as comprehensive as a full audit, they still demonstrate Tether's financial transparency.
Furthermore, Tether has restructured into 4 new subdivisions focusing on finance, data, Bitcoin mining and energy, and finally education. This restructuring aims to expand Tether's influence beyond stablecoins.
Strategic and creative investment plan
Tether plans to launch a digital platform to issue bonds and stocks in token form later this year and will support central banks in issuing digital currencies.
Tether's investment strategy is different from traditional venture capital funds. Instead of looking for immediate profits, Tether chooses projects that align with its long-term strategic interests, such as supporting Blackrock Neurotech, a developer of brain-computer interface technology.
This positive investment direction underscores Tether's commitment to strengthening its position in the cryptocurrency market and promoting the development of technology and finance globally.
