Tether makes its first big bet in the crypto venture capital market!

Stablecoin issuer Tether made its first crypto venture capital fund investment into Arcanum Capital’s Arcanum Emerging Technologies Fund II — a tokenized investment vehicle specializing in decentralized Web3 projects — for $2 million.

Managing partner at Arcanum Capital James McDowall said the fund invests in blockchain technologies that enhance remittances, cross-border payments, privacy, and banking services to the unbanked.

Tether CEO Paolo Ardoino also told Cointelegraph that censorship resistance and promoting open communication were key objectives for Tether and the fund:

"A key concern today is the evolving relationship between financial systems and individual freedoms, particularly in the context of increasing restrictions on open communication. Geopolitical conflicts have exposed the vulnerabilities of centralized infrastructure.”

Tether’s investment in the venture capital fund is the latest in a string of diversification moves from the stablecoin issuer.

“Diversification has become a key focus for Tether,” Ardoino told Cointelegraph and said the company will continue to build on this strategy in 2025.

A comparison between payments on the SWIFT interbank messaging system vs stablecoins. Source: Arcanum Capital

2024: the year of diversification for Tether

In October, Tether proposed a boron-backed token to the Turkish government. The mineral is used in household cleaning products, glass manufacturing, and fertilizers. According to the state-owned company Eti Maden Isletmeleri Genel Mudurlugu, Turkey controls roughly 70% of the global boron supply.

Tether also facilitated its first energy financing deal in October. The stablecoin company completed a $45 million oil transaction, which was financed by its USDT (USDT) stablecoin and included the transport of 670,000 barrels of crude oil from the Middle East.

The stablecoin issuer introduced the Hadron tokenization platform in 2025. Hadron allows businesses, asset managers, and countries to tokenize real-world assets such as government securities and stocks.

On Dec. 20, Ardoino announced Tether’s $775 million investment in the video platform Rumble.

The video-sharing platform bills itself as a free-speech space that does not censor content. According to Ardoino, Rumble’s free speech mandate was a big reason for the investment.

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