Tether Diversifies Beyond USDT with Strategic Moves
Tether, the stablecoin giant, is not putting all its eggs in one basket. 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%. Thes steps show tether’s strategy to diversify beyond its flagship USDT stablecoin.
USDT, launched in 2014, became the largest stablecoin issuer. It’s one of the top five cryptocurrencies by market cap. USDT plays a crucial role in crypto onboarding and cross-border payments. Tether holds billions in U.S. Treasury bills, making it a major foreign buyer.
Tether moved its headquarters to El Salvador, where it plans to build a Bitcoin mining farm. USDT is popular in regions with low debit card penetration, like Africa.Though, regulatory pressure is mounting. USDT was removed from major exchanges for EU customers due to non-compliance with crypto regulations.
To address these challenges, Tether is considering a new stablecoin that aligns with new regulations. The company also invests in Bitcoin mining, AI, and other ventures. Tether holds stakes in bitdeer, Northern Data AG, and Blackrock Neurotech. CEO Paolo Ardoino believes in building resilient money for any scenario.
