Tether Makes First Venture Capital Fund Investment, Commits $2M to Arcanum Capital’s Emerging Technologies Fund II

Tether, a prominent issuer of stablecoins, has initiated its first venture capital fund investment by committing $2 million to Arcanum Capital's Emerging Technologies Fund II.

Stablecoin giant Tether has made its first venture capital fund investment, committing $2 million to Arcanum Capital’s Emerging Technologies Fund II.

The fund focuses on tokenized investments in decentralized Web3 projects. Arcanum is targeting blockchain technologies that enhance remittances, cross-border payments, privacy, and banking for the unbanked.

"We are excited to have Tether join us in our mission to uncover the next generation of Web3 projects that are building the critical infrastructure for the tokenized economy," said James McDowall, managing partner at Arcanum Capital.

"Their deep understanding of the stablecoin market and experience in scaling Web3 technologies will be invaluable as we continue to identify and support projects at the forefront of innovation."

The investment is part of a broader strategy by Tether to diversify its portfolio beyond stablecoins. In 2024, Tether undertook several initiatives.

These include proposing a boron-backed token to Turkey, facilitating an energy financing deal that saw $45 million in oil being traded, and launching Hadron, a tokenization platform that allows for the tokenization of real-world assets such as government securities and stocks.

Moreover, Tether made a $775 million investment in Rumble, a video platform known for its commitment to free speech.

Through these ventures, Tether aims to support innovative financial solutions that address global economic challenges.