Under the direction of CEO Paolo Ardoino, Tether is reinvesting its growing profits in artificial intelligence (AI) and cutting-edge technologies.
Tether’s 5.5% Interest Rate on Reserve
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.
Over the last two years, Tether’s profits have increased significantly, partly as a result of rising interest rates that have increased the returns on its reserves.
Tether has made up to 5.5% on its reserve assets supporting USDT thanks to rising interest rates, up from just 0.2% in previous years.
The company recently disclosed a $5.2 billion profit for the first half of 2024. A significant portion of this financial growth was attributed to its reserve assets, which include short-term U.S. government bonds.
According to Ardoino, the company is trying to diversify its investment portfolio in addition to increasing its reserves. Tether Evo, a new venture investment division it has launched, intends to invest in cutting-edge technologies outside of the cryptocurrency market.
Tether is positioning itself to take on established tech leaders and increase its presence in the global technology scene by reinvesting its profits into these fields.
Decentralizing Politicized Technologies
Furthermore, Ardoino stated that the business is branching out by implementing decentralization in other sectors of the economy.
“We are trying to carry with us the bitcoin ethos in terms of financial freedom, freedom of speech, and freedom of access to technology in every venture we invest in,” said the CEO.
“The concept of decentralization can be applied to different areas, like artificial intelligence. We are already seeing how AI is being heavily politicized,” said Ardoino. “We believe that having a player independent of the classic actors—like Amazon, Microsoft, and Google—is going to be very, very important.”