Tether Invests $5 Billion in US Businesses and Debt

Tether, the issuer of the USDT stablecoin, has invested approximately $5 billion of its earnings into a variety of US businesses and government debt over the past two years. This strategic move is aimed at demonstrating the company's deep ties to the American economy, despite its significant presence in international markets.

According to CEO Paolo Ardoino, Tether has made substantial investments in several key sectors. Notably, the company invested $775 million in Rumble earlier this year, acquiring more than 103 million shares of Class A stock. Additionally, Tether put $200 million into BlackRock Neurotech in 2024 through its venture arm, Tether Evo, becoming the majority owner of the brain-interface startup. These investments represent significant bets on emerging technologies that could drive future growth in the US.

Tether has also expanded its presence in the Bitcoin mining industry. The company has built positions in several US-based Bitcoin mining firms and recently increased its holding in Bitdeer to 21%, making it one of the top shareholders. Furthermore, Tether is routing hash power to the OCEAN pool, further integrating its crypto reserves with American mining operations. This dual approach of financial investment and hardware involvement underscores Tether's commitment to the US market.

In addition to its investments in private companies, Tether holds more than $120 billion in US Treasury bills, making it the 19th-largest holder of US debt. This significant holding not only backs most of the USDT in circulation but also positions Tether as a major player in the bond market, with a vested interest in the stability of US fiscal matters.

Looking ahead, Tether plans to launch a new dollar-backed coin for the US market once federal regulations are in place. While USDT will continue to be active in developing nations, a new token could help Tether comply with upcoming US stablecoin laws and address concerns over exchange delistings due to regulatory compliance issues. With $153 billion in USDT currently in circulation, representing about 60% of the total stablecoin supply, Tether remains a dominant force in the global stablecoin market.

Despite these strategic investments and plans, Tether faces regulatory challenges. The company is under pressure to increase transparency regarding its reserves and has faced criticism over the use of USDT by illicit actors. Tether maintains that it collaborates closely with law enforcement to address any criminal activities involving its stablecoin.