Here’s What Tether CEO Revealed About the Company’s Bold Venture Capital Move

Tether CEO Paolo Ardoino is steering the company toward venture capital, focusing 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 Companies

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 is being channeled into Tether Evo, the company’s venture capital investment arm.

The division has already made significant strides, including acquiring a majority stake in neural implant technology company Blackrock Neurotech and investing in Northern Data Group, a data center operator whose infrastructure supports training AI models.

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 ​​field to counter the influence of big 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 companies aligned with its vision.

It is worth noting that the bulk of Tether’s reserves are comprised of short-term US government bonds, which have become more lucrative as interest rates have risen in response to inflation. This strategy has allowed Tether to make significant profits, with a profit of $5.2 billion for the first half of 2024, backed by a reserve of $118.5 billion.

Tether expansion under scrutiny

Despite its prominence, Tether has faced intense scrutiny. In 2021, the company settled a $41 million case with U.S. regulators over allegations that it misrepresented the composition of its reserves.

In 2023, accusations were made that Tether 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, allegations that Tether has strongly denied.

In the face of these 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 strengthen the company’s ability to monitor potentially illicit activities in secondary markets involving USDT through advanced automated tools.