Tether aims to contribute to improving decentralised ecosystems
The company is looking to strengthen the USDT ecosystem
The USDT is touted as the largest stablecoin by market cap
Tether was founded back in 2014 and is headquartered in Seattle, US
Photo Credit: X/ @Tether_to
Tether, the blockchain firm which issues the USDT stablecoin, has forayed into a new branch of Web3 before 2024 ends. The company has poured in $2 million (roughly Rs. 17 crore) into Arcanum Capital's Emerging Technologies Fund II. Arcanum is a Web3-focussed asset management company that provides funding to emerging projects related to blockchain, cryptocurrency, and other Web3 sectors. As per a report by CoinTelegraph, this is Tether's first step into the arena of Web3 investments since it launched in 2014.
Through the investment, Tether is looking to contribute to projects that are working on Holepunch technology, a release announcing the development said. The technology, created by a company called the Holepunch platform, eliminates the need for any servers for the operations of certain apps. Interestingly, both Tether and Holepunch have the same parent company – iFinex.
“One example of this is Keet, a messaging app that allows users to call, text, or video-call directly without relying on a central server. Unlike other common messaging apps, Keet remains operational without a single point of failure, ensuring continuous, secure communication,” the release said.
The stablecoin company is betting on such technological advancements expecting significant improvements in the ecosystems of decentralised social networking and finance in the long term.
As per Tether CEO Paolo Ardoino, resilient technologies that can protect people's freedom over speech and finances are the needs of the hour amid geopolitical tensions gripping multiple parts of the world.
A portion of the funding from Tether will also focus on early-stage firms that are using the USDT for payments and settlements, the release noted. The release did not provide elaborate details on the same.
Tether, meanwhile, has been in the news this year for crypto-related funding initiatives. Back in November for instance, Reuters reported that Howard Lutnick, the Chairman and CEO of BGC Group, was taking measures to strengthen alliance with Tether. Lutnick also heads the global fintech firm Cantor Fitzgerald LP. As per the report, Cantor Fitzgerald LP is in talks with Tether for its planned multibillion-dollar initiative that aims to lend US dollars to clients who put up Bitcoin as collateral.
While Tether's funding into Arcanum is reportedly its first crypto-focussed investment initiative, it did announce a strategic investment of $775 million (roughly Rs. 6,630 crore) in video sharing platform and cloud services provider Rumble.
Previously, Tether has found itself under the scanner of the US government over allegations of possible violations of sanctions and anti-money laundering rules. The company has denied the claims.
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