Stablecoin Issuer Tether Makes Strategic Move into Venture Capital
In a significant development, stablecoin issuer Tether has made its first crypto venture capital fund investment into Arcanum Capital’s Arcanum Emerging Technologies Fund II. The tokenized investment vehicle focuses on decentralized Web3 projects and has received a $2 million investment from Tether.
Managing Partner James McDowall Weighs In
James McDowall, managing partner at Arcanum Capital, emphasized the fund’s commitment to investing in blockchain technologies that enhance remittances, cross-border payments, privacy, and banking services for the unbanked. "Our fund invests in innovative projects that are pushing the boundaries of what is possible with blockchain technology," McDowall said.
Tether CEO Paolo Ardoino Discusses Key Objectives
Paolo Ardoino, Tether’s CEO, highlighted the importance of censorship resistance and promoting open communication as key objectives for Tether and the fund. "A key concern today is the evolving relationship between financial systems and individual freedoms, particularly in the context of increasing restrictions on open communication," Ardoino told Cointelegraph.
Geopolitical Conflicts Expose Vulnerabilities of Centralized Infrastructure
Ardoino further emphasized that geopolitical conflicts have exposed the vulnerabilities of centralized infrastructure. "Geopolitical conflicts have shown us that our financial systems are not as secure as we thought they were," Ardoino said. "This has led to a renewed focus on decentralized solutions and the importance of censorship resistance."
Tether’s Diversification Strategy Continues
Tether’s investment in the venture capital fund is the latest move in its diversification strategy, which began in 2024. The company has been actively exploring new areas of investment and expansion, including tokenization and energy financing.
A Comparison Between Payments on the SWIFT Interbank Messaging System vs. Stablecoins
In a related development, Arcanum Capital provided a comparison between payments on the SWIFT interbank messaging system versus stablecoins. The chart highlights the benefits of using stablecoins for cross-border payments, including faster settlement times and lower transaction fees.
Tether’s USDT Approved as Accepted Virtual Asset in Abu Dhabi
In other news, Tether’s USDT was approved as an accepted virtual asset in Abu Dhabi in 2024. This development marks a significant milestone for the company as it continues to expand its presence in the global financial markets.
The Year of Diversification for Tether
Tether has been actively exploring new areas of investment and expansion, including tokenization and energy financing. In October 2024, Tether proposed a boron-backed token to the Turkish government. The mineral is used in household cleaning products, glass manufacturing, and fertilizers.
Tether Facilitates Its First Energy Financing Deal
Tether also facilitated its first energy financing deal in October 2024. The stablecoin company completed a $45-million oil transaction, which was financed by its USDt USDT stablecoin and included the transport of 670,000 barrels of crude oil from the Middle East.
Hadron Tokenization Platform Introduced
In December 2024, Tether introduced the Hadron tokenization platform. The platform allows businesses, asset managers, and countries to tokenize real-world assets such as government securities and stocks.
Tether’s $775-Million Investment in Rumble Video Platform
On Dec. 20, Ardoino announced Tether’s $775-million investment in the video platform Rumble. The video-sharing platform bills itself as a free-speech space that does not censor content. According to Ardoino, Rumble’s free speech mandate was a big reason for the investment.
Tether’s Commitment to Free Speech and Open Communication
Ardoino emphasized Tether’s commitment to free speech and open communication. "We believe that censorship resistance is essential in today’s digital landscape," Ardoino said. "Our investment in Rumble reflects our values and our commitment to promoting free speech and open communication."
Conclusion
Tether’s investment in the Arcanum Emerging Technologies Fund II marks a significant milestone for the company as it continues to expand its presence in the global financial markets. The company’s diversification strategy, which began in 2024, has been successful in exploring new areas of investment and expansion.
Related Topics:
- Tether’s USDT approved as accepted virtual asset in Abu Dhabi
- The year of diversification for Tether
- Tether facilitates its first energy financing deal
- Hadron tokenization platform introduced by Tether
- Tether’s $775-million investment in Rumble video platform
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About Tether
Tether is a stablecoin issuer that provides secure and reliable digital currency solutions. The company’s commitment to free speech and open communication has led it to invest in innovative projects such as Rumble video platform.
Learn More About Tether
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Sources:
- Arcanum Capital
- Cointelegraph
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