Tether, the largest stablecoin issuer, has recently been investing heavily in emerging cryptocurrency and artificial intelligence companies. These investments and the company’s expansion beyond stablecoins show that the company is keen to expand.
Over the past few months, Tether has expanded into other areas such as peer-to-peer communications, bitcoin mining, renewable energy, and artificial intelligence.
Tether’s Latest Investments
XREX Group is the latest company that Tether has invested in. Earlier this week, the stablecoin issuer announced a strategic injection of $18.75 million into the blockchain-enabled financial institution to drive innovation and facilitate cross-border payments via USDT, the flagship stablecoin for emerging markets.
Tether’s funding will enable XREX to provide businesses with ease, efficiency, and lower costs, revolutionizing financial trading in emerging markets. Additionally, XREX will work with the Unitas Foundation to launch XAU1, a USD-pegged unitas stablecoin oversubscribed on Tether Gold (XAUt).
Commenting on the agreement, Tether CEO Paolo Ardoino said: “Tether’s strategic investment in XREX Group represents our unwavering commitment to advancing financial inclusion in emerging markets. This latest investment is aligned with Tether’s long-term vision to build resilient infrastructure beyond the crypto market, as demonstrated by our diversified investments in various industry sectors.”
Just over a week ago, Tether signed a $150 million private placement financing agreement with blockchain and high-performance computing company Bitdeer, which gave Tether the right to purchase up to 5 million additional shares in a private placement of 18,587,360 shares of Bitdeer’s Class A common stock at $10 per share.
Total proceeds from the issuance are $100 million, with Tether potentially offering an additional $50 million if Bitdeer fully exercises its warrants.
Investing profits in AI
CryptoPotato Tether reported in April that it had become a major shareholder in BlackRock Neurotech, a brain-computer interface (BCI) technology platform, after investing $200 million in the company. Notably, the company has also dabbled in AI-related companies, searching for the right talent to add to its AI team.
Tether’s latest move coincides with comments made by Ardoino in a recent interview. CryptoPotato Speaking at the Token2049 Dubai conference in 2024, he said the industry could soon see a trend towards AI-related investments, and the CEO noted that Tether only invests its profits in AI projects.
