Tether, the issuer of the USDT stablecoin, has made its inaugural venture capital investment by contributing $2 million to Arcanum Capital’s Emerging Technologies Fund II. This tokenized investment vehicle focuses on decentralized Web3 projects, particularly those enhancing remittances, cross-border payments, privacy, and banking services for the unbanked.
James McDowall, managing partner at Arcanum Capital, emphasized the fund’s commitment to supporting blockchain technologies that prevent censorship and ensure operational continuity. Tether’s CEO, Paolo Ardoino, echoed this sentiment, highlighting the importance of promoting open communication and addressing vulnerabilities in centralized financial infrastructures.
This investment aligns with Tether’s broader diversification strategy. In October, the company proposed a boron-backed token to the Turkish government, aiming to leverage the country’s substantial boron reserves. Additionally, Tether facilitated a $45 million oil transaction financed by USDT, involving the transport of 670,000 barrels of crude oil from the Middle East. The introduction of the Hadron tokenization platform further underscores Tether’s commitment to tokenizing real-world assets.
In December, Tether announced a $775 million investment in the video-sharing platform Rumble, known for its free-speech stance and resistance to content censorship. Ardoino noted that Rumble’s commitment to open communication was a significant factor in the investment decision, reflecting Tether’s dedication to supporting technologies that uphold individual freedoms.
