TLDR:
- Tether’s CEO, Paolo Ardoino, is moving the company into venture capital, focusing on emerging technologies like AI.
- Over 90% of Tether’s profits will be reinvested into ventures aligned with its vision, with Tether Evo as the company’s venture investment arm.
Ardoino revealed in an interview with WIRED that Tether will prioritize its stablecoin, USDT, but will also focus on reinvesting profits into ventures that align with its vision, particularly in the area of artificial intelligence. Since Ardoino took over as CEO in 2023, Tether has been exploring new avenues to invest its growing profits. The company’s venture investment arm, Tether Evo, has made notable moves, including acquiring stakes in Blackrock Neurotech and Northern Data Group. Ardoino emphasized Tether’s commitment to decentralization, applying it to technologies like AI and brain-computer interfaces. Tether’s reserve is primarily composed of short-term US government bonds, leading to significant profits of $5.2 billion in the first half of 2024.
Despite its success, Tether has faced scrutiny in the past, settling a case with US regulators in 2021 and facing allegations of questionable banking practices in 2023. The company has also been flagged for potential money laundering and terrorist financing activities, which Tether strongly denies. In response, Ardoino announced plans to double Tether’s workforce by mid-2025, with a focus on expanding the compliance team to monitor illicit activities involving USDT on secondary markets.
Overall, Tether’s bold move into venture capital, led by Ardoino, signals a strategic shift for the stablecoin issuer as it aims to compete with tech giants and invest in cutting-edge technologies.
