Tether Invests Heavily in US Companies Amid Vast US Debt Holdings

By: Eliza Bennet

Tether, the prominent issuer behind the world's largest stablecoin USDT, has embarked on a significant investment spree over the past two years, channeling approximately $5 billion of its earnings into a variety of American companies and technologies. These investments reflect the company's strategic pivot towards supporting U.S.-based enterprises and infrastructure, amidst its vast holdings of $120 billion in U.S. debt. This maneuvering positions Tether as an influential player both in the global currency market and within the U.S. economic landscape.

CEO Paolo Ardoino revealed that Tether has strategically invested across several sectors including decentralized media, neuroscience, and Bitcoin mining. Noteworthy investments include the acquisition of over 100 million Class A shares of the platform Rumble, intensifying Tether's foothold in decentralized content spaces, and a significant $200 million investment into Blackrock Neurotech, a brain-computer interface startup. These investments are seen as bold bets on advancing the next wave of technological growth within the U.S., highlighting Tether's 'pro-America' strategy to cement its presence in emerging sectors.

Furthermore, Tether's ventures extend into the Bitcoin mining arena with substantial holdings and hash power routed to U.S.-based operations like Bitdeer and the OCEAN pool, signifying an intersection of financial prowess and infrastructural engagement. On the monetary side, Tether is now the 19th-largest holder of U.S. Treasury bills, surpassing nations such as Germany and the United Arab Emirates. This substantial holding underscores Tether's significant influence in the U.S. bond market, backing the majority of USDT circulating globally.

In light of regulatory evolution and scrutiny, Tether is contemplating new stablecoin offerings tailored to the U.S. market to comply with incoming federal regulations. While USDT remains dominant, with $153 billion in circulation and comprising about 60% of the total stablecoin supply, pressure arises from compliance issues in the U.S. and Europe. CEO Ardoino indicated plans for a new dollar-backed token to align with anticipated U.S. stablecoin laws, potentially smoothing regulatory relationships and maintaining Tether's leadership in the global cryptocurrency ecosystem.