Ardoino stated Tether will prioritize its stablecoin but reinvest over 90% of profits into ventures that align with its vision.
Paolo Ardoino, Tether’s CEO, is steering the company into venture capital, with a focus on emerging areas like AI, as revealed in his recent interview with WIRED.
With billions in reserves, Tether is positioning itself to compete with tech giants such as Microsoft, Google, and Amazon.
Tether’s Profit Ventures
Since Ardoino took over as CEO in December 2023, Tether has been exploring new avenues to invest in its growing profits. Some funds have been allocated to bolster the USDT reserve, while the rest are being funneled into Tether Evo, the company’s venture investment arm.
This division has already made significant moves, including acquiring a majority stake in neural implant technology firm Blackrock Neurotech and investing in Northern Data Group, a data center operator whose infrastructure supports AI model training.
Ardoino highlighted Tether’s commitment to the ethos of decentralization, applying it to emerging technologies like artificial intelligence and brain-computer interfaces.
He stressed the importance of an independent player in the AI space to counteract the influence of major tech companies. Similarly, Tether aims to support BCI technology that prioritizes privacy.
Regarding investment capital, Ardoino revealed that while Tether will continue to prioritize its stablecoin business, over 90% of its profits will be reinvested in ventures aligned with its vision.
Notably, the bulk of Tether’s reserve is composed of short-term US government bonds, which have become more lucrative as interest rates have risen in response to inflation. This strategy has resulted in significant profits, with Tether reporting $5.2 billion in earnings for the first half of 2024, backed by a $118.5 billion reserve.
Tether’s Expansion Amid Scrutiny
Despite its prominence, Tether has faced considerable scrutiny. In 2021, the company settled a $41 million case with US regulators over allegations that it had misrepresented the composition of its reserves.
In 2023, accusations arose suggesting that Tether had used questionable methods to secure banking services during its early operations. Additionally, the UN and blockchain analytics firms have flagged USDT as a tool frequently used in money laundering and terrorist financing, claims that Tether has strongly denied.
Amid the ongoing concerns, Ardoino, has announced plans to double the company’s workforce by mid-2025, with a significant expansion of its compliance team. This growth strategy aims to bolster the company’s ability to monitor potentially illicit activities on secondary markets involving USDT through advanced automated tools.