Tether Diversifies Beyond USDT with Strategic Moves
Tether, the stablecoin giant, is spreading its wings. In April, it announced two significant moves. First, it partnered with Bitfinex, SoftBank, and cantor Fitzgerald to launch Twenty One Capital, a Bitcoin-focused public company. Second, it increased its stake in Italian football club Juventus to over 10%. these steps show Tether’s strategy to diversify beyond its USDT stablecoin.
USDT, launched in 2014, became the largest stablecoin issuer. It’s one of the top five cryptocurrencies by market cap. USDT is crucial for crypto trading and onboarding. Many exchanges use it as a USD substitute. Tether holds billions in U.S. Treasury bills, making it a major foreign buyer.
tether moved its headquarters to El Salvador, the first country to adopt Bitcoin as legal tender. However, local Congress later revoked Bitcoin’s legal tender status. Despite this, USDT remains a vital payment tool in regions with low debit card penetration and sanctioned jurisdictions.
Legal challenges loom. Tether faces scrutiny in the EU and U.S. for not complying with crypto regulations. CEO Paolo Ardoino denies allegations of money laundering and sanctions violations. Tether is considering a new stablecoin to align with regulations.
Beyond stablecoins, Tether invests in Bitcoin mining, AI, and other ventures. It owns stakes in Bitdeer, Northern Data AG, and Blackrock Neurotech. Tether also backs Rumble, Fizen, and Holepunch. These diversifications could help Tether weather regulatory storms.
