Here’s what Tether’s CEO revealed about the company’s bold move to venture capital

Tether CEO Paolo Ardoino is steering the company toward venture capital, focusing on emerging areas like AI, as he revealed in his recent interview with WIRED.

With billions in reserves, Tether is positioned to compete with tech giants like Microsoft, Google and Amazon.

Tether’s Profit Ventures

Since Ardoino took over as CEO in December 2023, Tether has been exploring new avenues to invest in its growing profits. Some funds have been allocated to shore up the USDT reserve, while the rest is channeled into Tether Evo, the company’s venture investment arm.

That division has already made significant moves, including acquiring a majority stake in neural implant technology firm Blackrock Neurotech and investing in Northern Data Group, a data center operator whose infrastructure supports training of AI models.

Ardoino highlighted Tether’s commitment to the ethos of decentralization, applying it to emerging technologies such as artificial intelligence and brain-computer interfaces.

He highlighted the importance of an independent player in the AI ​​space to counter the influence of major tech companies. Similarly, Tether aims to support privacy-first BCI technology.

In terms of investment capital, Ardoino revealed that while Tether will continue to prioritize its stablecoin business, more than 90% of its profits will be reinvested in companies aligned with its vision.

In particular, most of Tether’s reserve is made up of short-term US government bonds, which have become more lucrative as interest rates have risen in response to inflation. This strategy has resulted in significant profits, with Tether reporting $5.2 billion in earnings for the first half of 2024, supported by a $118.5 billion reserve.

Tether’s expansion amid scrutiny

Despite its prominence, Tether has faced considerable scrutiny. In 2021, the company settled a $41 million case with US regulators over allegations that it had misrepresented the composition of its reserves.

In 2023, allegations emerged suggesting that Tether had used questionable methods to secure banking services during its early operations. In addition, the UN and blockchain analytics companies have flagged USDT as a tool frequently used in money laundering and terrorist financing, claims that Tether has flatly denied.

Amid the current concerns, Ardoino has announced plans to double the company’s workforce by mid-2025, with a significant expansion of its compliance team. This growth strategy aims to strengthen the company’s ability to monitor potentially illicit activities in secondary markets involving USDT using advanced automated tools.

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