Tether, the issuer of the USDt stablecoin, has made its first venture capital investment, contributing $2 million to Arcanum Capital’s Arcanum Emerging Technologies Fund II. The fund specializes in decentralized Web3 projects.
The investment targets blockchain technologies that enhance remittances, cross-border payments, privacy, and financial services for the unbanked. Tether CEO Paolo Ardoino highlighted the importance of censorship resistance and promoting open communication as primary goals. The investment is part of Tether’s broader strategy to diversify its portfolio and support decentralized technologies.
The announcement was made in late December 2024, marking a key milestone in Tether’s diversification efforts.
Arcanum Capital’s fund operates globally, investing in decentralized Web3 projects that align with Tether’s mission of enhancing financial inclusion and freedom.
Tether aims to address vulnerabilities in centralized financial systems, which have been exposed by geopolitical conflicts. By investing in decentralized Web3 technologies, Tether seeks to support censorship-resistant infrastructure and promote open communication.
Tether’s $2 million investment complements other diversification initiatives, including the launch of the Hadron tokenization platform in 2025 and a $775-million investment in the video-sharing platform Rumble. In October, Tether proposed a boron-backed token to Turkey and facilitated a $45-million crude oil transaction using its stablecoin.
Arcanum Capital’s managing partner James McDowall stated the fund is focused on projects that leverage blockchain technology to solve real-world challenges. These include improving access to financial services and enabling secure, private transactions.
Tether’s investment reflects its commitment to building decentralized financial ecosystems and expanding its influence beyond stablecoins. The move is part of a broader trend among crypto firms to support innovative projects that drive the adoption of blockchain technology while diversifying their revenue streams.
