According to a report by Bloomberg on Tuesday, Paolo Ardoino, the CEO of Tether, the issuer of the stablecoin USDT, stated in an interview that the company’s investment arm is expected to make $1 billion worth of investments next year. As the operator of the world’s largest stablecoin USDT, Tether has invested most of its reserves in US Treasury bonds and other securities, generating billions of dollars in profits to date. The funds for investments that Paolo Ardoino will use will come from these operational profits.
Paolo Ardoino mentioned that the investment department consists of 15 members from various industries, who evaluate hundreds of financing proposals each month, with a focus on mostly startup companies. The key investment areas include alternative financial infrastructure in emerging markets, artificial intelligence (AI), and biotechnology.
Reportedly, Tether has invested around $2 billion in these areas over the past two years. Some notable examples include Tether’s majority stake of $200 million in the brain-computer interface company Blackrock Neurotech, and a recent investment of $18.75 million in the Taiwan exchange XREX Group.
Furthermore, an important part of Tether’s investment strategy involves artificial intelligence technology. The company has invested over $1 billion in the AI industry, such as supporting data center operator Northern Data Group. Paolo Ardoino told Bloomberg that: