Evaluating hundreds of projects each month, Tether CEO: Plans to invest $1 billion externally in the coming year

According to an interview with Tether CEO Paolo Ardoino by Bloomberg, Tether's investment arm is planning to invest over $1 billion in deals over the next 12 months.

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Investment Infrastructure, AI, and Biotech

Paolo Ardoino pointed out that Tether's Investments division currently has 15 people and is continuously expanding, evaluating up to hundreds of investment proposals each month, with the majority coming from startups focusing on alternative financial infrastructure, AI, and biotech in emerging markets. Over the past two years, Tether has invested approximately $2 billion in these areas.

He also emphasized that Tether is able to provide AI computing services for all invested companies, hoping that through related investments, decentralized technology can be realized in traditional finance, reducing reliance on tech giants like Google, Amazon, and Microsoft.

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100% Reserve, 6% Buffer

According to Tether's audit report, Tether achieved a profit of $4.5 billion in the first quarter, with investment plans expected to keep 100% reserve funds and an additional 6% of funds extracted from profits as a buffer to ensure the stability of USDT's redemption mechanism.

Tether plans to invest a portion of the remaining profits and has already invested over $1 billion in the AI field, such as data center operator Northern Data Group and brain-computer interface (BCI) technology company Blackrock Neurotech.

Paolo Ardoino stated:

The news of Tether making money has spread worldwide. We receive dozens or hundreds of investment proposals every month, but ultimately execute only a very small portion.

Note: Third-party audits differ from financial audits, as they are limited to a snapshot of a specific period and cannot access a company's accounts comprehensively.

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Expanding Business Scope

Tether is actively expanding its business beyond stablecoins, as Bloomberg noted that stablecoins are facing regulatory pressure globally.

In April of this year, Tether split into four divisions: Finance, Data, Bitcoin Mining and Energy, and Education. Paolo Ardoino mentioned plans to launch a tokenized bond issuance platform in the second half of the year, allowing traditional financial companies to issue digital token forms of bonds and stocks.

He concluded:

Tether is different from traditional venture capital firms; we do not seek companies that achieve specific profit goals within one to two years. We invest in things we care about, have our own strategy, which is to invest only in projects we find very interesting.