Tether Sets Sights on AI and Emerging Tech Amid Surging Profits
Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...
Tether is redirecting its rising profits into artificial intelligence (AI) and emerging technologies under the leadership of CEO Paolo Ardoino.
According to a recent report published by Wired, Ardoino emphasized that Tether’s new investment strategy involves channeling surplus funds into areas like AI, aiming to compete with tech giants such as Microsoft, Google, and Amazon.
Tether has seen a significant increase in profits over the past two years, largely due to the rising interest rates that have boosted the returns on its reserves.
With interest rates climbing, Tether has been able to earn as much as 5.5% on its reserve assets backing USDT, compared to just 0.2% in earlier years.
The company recently reported a profit of $5.2 billion for the first half of 2024, with its reserve assets, including short-term U.S. government bonds, playing a key role in this financial growth.
Ardoino stated that the company is not just focusing on bolstering its reserves but also looking to diversify its investment portfolio. It has established a new venture investment division, Tether Evo, which aims to invest in emerging technologies beyond the cryptocurrency space.
By reinvesting its profits into these areas, Tether is positioning itself to challenge established tech leaders and expand its footprint in the global technology landscape.
In addition, Ardoino said that the company is expanding its boundaries by applying decentralization to other industries.
“We are trying to carry with us the bitcoin ethos in terms of financial freedom, freedom of
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