Tether’s $5 Billion Investment Surge Over Two Years Supports American Firms: CEO

Tether, the organization behind the USDT stablecoin, has discreetly invested around $5 billion of its profits into various U.S. businesses and government securities over the last couple of years. This action reflects its commitment to the U.S. economy.

As stated by CEO Paolo Ardoino, these investments are intended to demonstrate the company’s strong ties to the American market, despite its significant presence in international sectors.

Significant Investments in Technology

Earlier this year, Tether allocated $775 million to Rumble, acquiring over 103 million shares of Class A stock. Additionally, in 2024, the firm invested $200 million in BlackRock Neurotech through its venture capital arm, Tether Evo.

This acquisition granted Tether majority ownership of the brain-interface technology company, indicating substantial investment in potential future advancements within the U.S. tech landscape.

Tether’s Foray into Bitcoin Mining

Reports indicate that Tether has established stakes in various U.S. Bitcoin mining enterprises, recently increasing its ownership in Bitdeer to 21% and thus becoming one of its prominent shareholders.

Moreover, the firm is directing hash power to the OCEAN mining pool, further integrating its cryptocurrency resources with U.S.-based mining operations. This strategy merges financial investment with technological infrastructure.

Treasury Holdings and U.S. Debt

Filings reveal that Tether possesses over $120 billion in U.S. Treasury bills, ranking it as the 19th largest holder of U.S. debt, surpassing nations like Germany and the United Arab Emirates.

These Treasury bills underpin most of the USDT in circulation, positioning Tether as a significant participant in the bond market, with a vested interest in maintaining U.S. fiscal stability.

Intentions for a New Stablecoin

According to Ardoino, Tether intends to introduce a new dollar-backed coin for the U.S. market once regulatory frameworks are established. While USDT will continue to operate in developing regions, this new token may cater to forthcoming stablecoin regulations in the U.S.

With approximately $153 billion in USDT circulating—around 60% of the total stablecoin volume—Tether remains the leading player globally. However, the U.S. and European markets have seen some delistings of USDT from exchanges due to MiCA compliance concerns. A domestically developed coin might alleviate these issues.

Regulatory Challenges

Tether’s approach is not without hurdles. The company is urged to provide greater transparency regarding its reserves and has faced criticism related to the usage of USDT by illegitimate entities. Tether emphasizes its cooperation with law enforcement to address instances of illicit funding.