Tether (USDT) Issuer to Expand Investment Horizons Beyond Cryptocurrency Sector

With a substantial $7 billion in excess reserves, Tether is positioned to accelerate its investment activities.

Tether, the company behind the $140 billion stablecoin USDT, is planning to expand its investment activities beyond the cryptocurrency sector, according to sources familiar with the firm’s strategy.

With $7 billion in excess reserves, Tether is looking to accelerate its investment activities as the company navigates a landscape shaped by evolving market conditions and potential risks to its USDT token.

While some may view Tether’s investment strategy as “haphazard,” insiders suggest it is a calculated move to ensure the firm remains resilient in the face of challenges.

In Europe, Tether is grappling with the implications of the new MiCA regulatory framework, which has prompted major exchanges like Coinbase, Kraken, and Crypto.com to reconsider their offerings of USDT.

This shift has contributed to a decline in Tether’s market cap, with reports indicating a loss of over 1% when the regulations took full effect in late December 2024.

To counteract competition from emerging stablecoins and the potential for declining U.S. interest rates, Tether’s strategy has been compared to that of petro-states like Saudi Arabia, which leverage oil wealth for diversification.

Tether has already ventured into non-crypto investments, including a $775 million stake in the social media platform Rumble.

The firm is also supporting European startups, having invested in StablR, which has launched two stablecoins compliant with MiCA regulations: EURR and USDR.

As Tether continues to expand its portfolio, the firm is poised to navigate the complexities of both crypto and traditional markets.