Tether CEO Paolo Ardoino revealed some of the stablecoin company's recent investments in sectors ranging from Bitcoin mining and TradFi to payments for commodity trading.
In an interview at the Emergence conference in Prague on December 5th, Paolo Ardoino said that Tether (USDT) has generated more than $13 billion in profits. Tether currently has a market capitalization of over $135 billion and additional excess capital of over $6 billion. These funds will be used to expand Tether's growing stablecoin investment portfolio.
“When the stablecoins and the rest are invested outside of the storage unit as a separate perspective from another company called Tether Investments, they are invested in different areas,” Ardoino said.
One of those areas is Bitcoin (BTC) mining. Ardoino revealed that he and the Tether team are “huge fans” of Bitcoin mining and want to actively participate in securing a finite supply of Bitcoin to prevent it from becoming too decentralized. . He acknowledged that Tether is investing in Bitcoin mining companies in small countries as well as Latin America.
“In the case of Bitcoin, we cannot rely on two or three companies to mine to be 90% of the miners, so we need additional forces from around the world to make Bitcoin safe. . So this is one of our major green investments,” Ardoino said.
Another area of interest for Tether is TradFi and coin trading. He said Tether has initiated several trades in the TradFi world and has served as a “short-term lender” for people in a variety of businesses.
Additionally, Ardoino said Tether is considering the use of Tether in cross-border payments, particularly in commodity trading. He believes that stablecoins have the potential to be a “game changer” in the commodity trading space, as they can greatly simplify the payment process.
Compared to regular credit transfers, which usually take a long time, USDT arrives much faster after being sent via blockchain, and payments are confirmed in just a few seconds.
“So this is one area where we plan to put a lot of resources into it, because we see how USDT can be a game changer,” Ardoino said.
In addition, Tether also invests in a variety of “small and medium-sized enterprises around the world,” many of which are located in developing countries in emerging markets, Ardoino added. Other investments Tether has continued from past deals include brain-computer interface technology company BlackRock Neurotech and AI infrastructure company Northern Data Group.
