In a significant move towards diversification, 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 specializes in decentralized Web3 projects and received a $2 million injection from Tether.
What does the investment signify?
The investment marks a new chapter in Tether’s strategy to expand its reach beyond stablecoin issuance. James McDowall, managing partner at Arcanum Capital, highlighted that the fund invests in blockchain technologies that enhance remittances, cross-border payments, privacy, and banking services for the unbanked.
Tether’s Objectives
According to Tether CEO Paolo Ardoino, censorship resistance and promoting open communication are key objectives for Tether and the fund. In a statement to Cointelegraph, Ardoino emphasized:
‘A key concern today is the evolving relationship between financial systems and individual freedoms, particularly in the context of increasing restrictions on open communication. Geopolitical conflicts have exposed the vulnerabilities of centralized infrastructure.’
Ardoino’s vision for Tether
Tether’s investment in the venture capital fund is part of a broader strategy to diversify its offerings. Ardoino confirmed that diversification will continue to be a key focus for Tether in 2025:
‘Diversification has become a key focus for Tether,’ Ardoino told Cointelegraph, ‘and we will continue to build on this strategy in 2025.’
A comparison between payments on the SWIFT interbank messaging system vs. stablecoins
[Insert image comparison between payments on the SWIFT interbank messaging system and stablecoins]
Related: Tether’s USDT approved as accepted virtual asset in Abu Dhabi
The year of diversification for Tether
2024 has been a pivotal year for Tether, marked by significant moves towards diversification. Some notable milestones include:
1. Proposed boron-backed token to the Turkish government
In October, Tether proposed a boron-backed token to the Turkish government. The mineral is used in household cleaning products, glass manufacturing, and fertilizers. According to the state-owned company Eti Maden Isletmeleri Genel Mudurlugu, Turkey controls roughly 70% of the global boron supply.
2. Facilitated first energy financing deal
Tether also facilitated its first energy financing deal in October. 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.
3. Introduced Hadron tokenization platform
In 2025, Tether introduced the Hadron tokenization platform. Hadron allows businesses, asset managers, and countries to tokenize real-world assets such as government securities and stocks.
4. $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.
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