Tether Holdings, the issuer of the world’s largest stablecoin, USDT, plans to invest over $1 billion in various deals over the next 12 months, according to a June 11 Bloomberg report.

Tether’s venture capital arm has already spent about $2 billion on technologies like AI and alternative financial infrastructure in the past two years. For instance,  Tether recently invested $200 million to acquire a majority stake in Blackrock Neurotech, a firm developing brain-computer interface (BCI) technology

"It's all about investing in technology that helps with disintermediation with traditional finance," Tether’s CEO, Paolo Ardoino said. "Less reliance on big tech companies like Google, Amazon and Microsoft."

Focus Areas

Ardoino mentioned that the company’s growing team of 15 evaluates hundreds of pitches monthly. The firm’s focus areas for investment include:

• Financial Infrastructure: Projects that enhance or create new financial systems.

• Artificial Intelligence: Technology that can benefit Tether's operations and its investments.

• Biotech: Innovative biological and medical technologies.

Tether plans to offer AI computing to all the companies it invests in. This approach aims to reduce reliance on major tech companies like Google, Amazon, and Microsoft.

Investment Strategy

The current high-interest-rate environment has reportedly allowed Tether to secure substantial earnings. In the first quarter alone, Tether reported a profit of $4.5 billion. The company plans to reinvest these profits, keeping 100% of its revenue plus a 6% cushion to ensure smooth USDT redemptions.

Tether’s investment strategy aligns with its goal to diversify beyond its foundational cryptocurrency offerings, particularly its major product,the USDT stablecoin. This diversification includes expanding its financial ecosystem and enhancing profitability through investments in high-growth areas.

Despite past regulatory challenges, Tether has maintained the peg of its USDT stablecoin to the dollar, ensuring stability and reliability for users.