- A $2M investment in Arcanum Capital marks Tether’s first venture into funding decentralized blockchain and AI projects.
- Tether’s investment will increase USDT adoption in payment systems and accelerate the growth of Holepunch, a critical infrastructure for peer-to-peer applications.
- By entering venture capital, USDT strengthens its position in the Web3 and DeFi sectors, supporting the growth of blockchain tech.
Tether, the issuer of the largest stablecoin, has just revealed a $2M investment in the Arcanum Emerging Technologies Fund II, its first venture capital investment. The Tether funds will be used to further the development of AI and blockchain, especially with regards to cryptocurrency payments and within the Bitcoin network.
Tether’s Focus on Decentralization
Tether funds will be deployed by Arcanum Capital to foster research projects that will aim to establish a connection between blockchain and AI. Some of the capital will also further the uptake of the Tether stablecoin, USDT in payments. Also, the fund will also support projects that are initiated with Holepunch – a technology for developing decentralized P2P applications. Holepunch, which has connection with Tether and Bitfinex, will assist Tether to give more emphasis to decentralized options.
This is the first time company is stepping into the venture capital game. Traditionally, the stablecoin giant has been focused on its main business but is now entering the field to support new blockchain initiatives. CEO, Paolo Ardoino, said he was enthusiastic about the partnership because it may result in the creation of useful tools given the current market conditions. Ardoino said that the partnership with Arcanum Capital is in line with Tether’s vision of empowering innovative blockchain solutions.
“In a world increasingly shaped by geopolitical tensions and macroeconomic uncertainty, the need for resilient technology to safeguard our freedoms has never been more crucial.”
Tether’s Strategic Investment Support
Arcanum Capital’s Managing Partner, James McDowall, noted his appreciation for the support, which took the form of a $2 million investment; this, he said, demonstrates firm’s commitment to the fund’s goal of supporting innovative blockchain solutions. He said that the investment confirmed Arcanum’s focus on developing unique products in the decentralized economy, as well as the support of USDT, which enhances their strategy.
The company that issues USDT is expanding its business into the venture capital sphere as part of a wider strategy. This was not very long ago, especially when the CEO Paolo Ardoino unveiled the companies new investment strategy which now encompasses Bitcoin mining, TradFi and commodities. This foray into Arcanum Capital is Tether’s first foray into venture capital and it is currently unknown if USDT will be expanding in this area.
With the entry into the venture capital market, USDT is turning its attention to the further development of decentralized technologies, which go beyond the stablecoin business. This is an exciting development towards the company’s growth as a prominent participant in the Web3 and DeFi space with the Arcanum investment.
The collaboration between Tether and Arcanum Capital will surely attract attention within the blockchain and crypto industries as the two entities strive to create new technologies for the future. firm’s participation in the fund opens the door for other strategic investments that may define the future of decentralized technology. At the moment, the $2 million remains a key contribution to company’s ambitious goals of supporting the development of decentralized technologies.
