Tether, the world’s largest stablecoin issuer has officially pivoted into venture capital funding by pouring in $2 million into Arcanum Emerging Technology Fund II.
The stablecoin issuing company which holds the highest market share fulfilled its long-term goal of diversification by opening up a new business offer for clients of the company.
Arcanum announced the funding received from Tether via a Press Release spelling out the transaction details.
Arcanum Emerging Technology Fund II is focused on accelerating the development of transformative Web3 technologies, including the Bitcoin ecosystem and the intersection of blockchain and AI.
Other areas of interest include blockchain infrastructure, innovations in payments, and privacy-focused technologies.
The arrangement between the two entities stipulates portions of the Fund will focus on companies utilizing Tether’s stablecoin for innovations in payments
Paolo Ardoino, the CEO of Tether commented on the partnership between the two entities highlighting its significance in promoting freedom in an increasingly disturbed world.
“In a world increasingly shaped by geopolitical tensions and macroeconomic uncertainty, the need for resilient technology to safeguard our freedoms has never been more crucial. We are proud to partner with Arcanum Capital to stand at the forefront of empowering people with the tools and knowledge to protect their sovereignty.” Paolo stated.
James McDowall, Managing Partner of Arcanum Capital reacted to Paolo Ardoino’s comment giving a strong vote of confidence on the partnership
Tether’s Drive for Diversification
Tether under Paolo Ardoino has increased its efforts in diversifying the Tether firm away from stablecoin issuing alone to other fields of endeavor.
Tether recently facilitated a $45 million crude oil transaction using USDT and recently invested $775 million in Rumble a fast-growing video-sharing platform known for promoting free speech.
Tether’s despite its share of the market and diversification plans still battles regulatory hurdles in some jurisdictions.
The stablecoin issuing company is currently at loggerheads with Europe’s MICA and is facing a possible ban from the continent.
Tether (USDT) is in head-on competition with other stablecoin issuing companies like Circle USDC and Paypal’s PYUSD.
Ripple Labs, the parent company of XRP this month launched its own Stablecoin RLUSD increasing the competition in the stablecoin market.