🌎 Tether Expands Investments Beyond Crypto

Tether Expands Investments Beyond Crypto as Reserves Grow

Tether, the $140 billion stablecoin issuer, is expanding its investments beyond the crypto space as its reserves grow. The company has $7 billion in excess reserves, which has given it the financial strength to ramp up its investments further.

Investment Strategy

A person familiar with the firm’s operations explained that while Tether’s investment strategy might seem “haphazard,” the firm is focused on staying ahead of potential risks to its USDT token. This strategy is crucial in maintaining the stability of the token and ensuring its continued growth.

Regulatory Hurdles in Europe

In Europe, Tether is facing regulatory hurdles as markets adjust to the MiCA framework. Major crypto exchanges, including Coinbase, Kraken, and Crypto.com, have signaled their plans to remove Tether’s USDT from their offerings to comply with the local rules. This has resulted in Tether’s stablecoin losing more than 1% of its market cap when MiCA regulations came into full effect in late December 2024.

Comparison to Petro-States

With growing competition from emerging stablecoins and the potential for U.S. interest rates to decline, sources close to Tether have compared the company’s strategy to how petro-states like Saudi Arabia use oil wealth to diversify.

It makes sense for Tether to keep branching out.

Investments Outside the Crypto Space

Tether has already made significant investments outside the crypto space. For instance, the stablecoin issuer acquired a $775 million stake in the social media platform Rumble. Additionally, Tether is backing European startups, including an investment in StablR, which launched two MiCA-compliant stablecoins, EURR and USDR.

Tips for Investors

For investors in the crypto space, Tether’s expansion into other sectors is a sign of the company’s commitment to growth and stability. Here are some tips to consider: