Cryptocurrency Ecosystem Investment: Tether Is More Than Just a USDT Issuer

2025-07-31 16:30

Read this article in 20 Minutes

Tether is not only the issuer of the stablecoin USDT, but also invests in various areas of the cryptocurrency ecosystem through its investment arm Tether Ventures, including mining, hashrate support, decentralized technical infrastructure, etc., to solidify its position in the industry and explore growth opportunities.

Original Article Title: "Cryptocurrency Ecosystem Investment: Tether Is More Than Just a USDT Issuer"

Original Source: Allscale

What Is Stablecoin Giant Tether Investing In?

Stablecoin giant Tether recently disclosed a list of companies it has invested its proprietary funds in. This list includes mining and computational support companies like Bitdeer and Northern Data, as well as decentralized technology infrastructure companies like Holepunch and Synonym.

It is evident that Tether is not content with experiencing diminishing marginal returns solely in the stablecoin issuance arena. Instead, they are learning from the experiences of Microsoft, Apple, and Google, attempting to seize a high ground in the cross-industry cryptocurrency ecosystem through a diversified investment portfolio. This move aims to further consolidate network effects and seek growth opportunities in cross-industry deployment and emerging markets. Tether is no longer merely chasing profits in the issuance phase but is striving to play a deeper role in the crypto world — acting as both a stable payment tool provider, a driver of technological innovation, and even a reshaper of the global financial landscape.

The stablecoin industry is a forest. To avoid focusing solely on individual trees and missing the forest, it is necessary to have an overview of the entire industry's ecosystem map. The industry upstream consists of blockchain infrastructure and analysis monitoring, providing standardized ecosystem components such as blockchain networks, on-chain data analysis, compliance monitoring, risk assessment, etc. They are like the lifeblood source of stablecoins. The industry midstream mainly comprises stablecoin issuers and liquidity & yield, which are the core of the entire industry's value chain. Tether is the stablecoin issuer in the industry midstream. The industry downstream brings us a broader and more diverse range of application scenarios, from trading to payments, from individuals to enterprises, from DeFi to the integration of traditional finance. These companies directly serve end users and continuously explore new business models and application propositions.

Backward and Forward Investments Make 1+1>2

Despite Tether Venture's investments in many companies, we can still analyze the strategic intent of the investment portfolio and assess the stablecoin industry's development direction. Let's analyze from a strategic perspective why Tether has chosen these companies as investment focuses. Breaking down the investment portfolio of the 25 companies disclosed by Tether Venture's official website can be classified as follows.

Infrastructure is the Foundation of USDT Circulation

First and foremost, blockchain infrastructure and mining (such as Bitdeer, Northern Data, Elemental Altus Royalties) are the lifeblood of the Tether ecosystem. Therefore, Tether Venture achieves backward integration by investing in these upstream infrastructure and mining companies, strengthening control and bargaining power over upstream enterprises.

Specifically, blockchain networks like Bitcoin and Ethereum are the foundation of USDT circulation, and mining power directly determines the stability and security of these networks. By investing in mining giants like Bitdeer, Tether is essentially nurturing its own ecosystem, ensuring the smooth operation of USDT in a multi-chain environment.

Northern Data's high-performance computing power provides a technical reserve for future blockchain scaling and data-intensive applications (such as DeFi or NFT), and may even lay the groundwork for Tether's AI-related plans.

On the other hand, Elemental Altus's mining rights investment seems to be adding a layer of real-world asset security to the USDT ecosystem, both diversifying risk and paving the way for long-term returns. Tether is aware that if the underlying blockchain falters, USDT's position would be at risk, so it has chosen to enhance its voice and influence in the blockchain infrastructure field through backward integration, paving the way for the company's long-term growth.

Compliance and Security Technology Shaping Trust

Furthermore, investments in compliance and security technology (Crystal Intelligence, Zengo) reflect Tether's dual consideration of regulatory pressure and user trust. As a company whose reserve transparency has often been questioned, Tether is well aware that conveying trust to users through a compliant posture is crucial for its survival.

Crystal Intelligence's blockchain analysis tool not only helps track illegal activities but also demonstrates to regulatory agencies and the public its commitment to compliance, shaping a positive industry image. This is a proactive defense posture, as no one knows when the next avalanche will arrive. Zengo's keyless wallet directly addresses a user pain point—complex private key management that deters the average person. Through this technological innovation, Tether has reduced the difficulty of using and circulating USDT, bridged the gap with the public, expanded the potential user base, driven by its ambition to penetrate the mainstream market and transform the stablecoin from a niche geek toy into a widely-used tool.

The Application Layer Financial Services Company is the Gatekeeper of USDT

In terms of forward integration, Tether has invested in many payment and financial services companies such as CityPay.io, Oobit, Xrex, and others. Tether's vitality is not in massive market value fluctuations, but in transaction by transaction payment behavior; this is where the vitality of Tether USDT lies. The invested companies have transformed USDT from a digital asset into a daily payment tool. For example, Oobit's NFC payment method has almost replicated the convenience of Apple Pay, while Xrex has provided cross-border payment solutions for small and medium enterprises. Traditional finance certainly has its shortcomings, but to break away from path dependence, one must rely on changes in the last mile of payment, relying on changes in financial gatekeepers.

Financial inclusion and the layout in emerging markets (SortedWallet, Mansa, Quantoz, Orionx) demonstrate Tether's global vision. SortedWallet brings encrypted wallets to unbanked populations in Africa and South Asia, Mansa optimizes cross-border payments, while Quantoz and Orionx pave the way in Europe and Latin America. These regions are often blind spots for traditional financial services, with a large number of underserved vulnerable groups under traditional financial systems that are yet to be banked. Tether sees the opportunity: by serving billions of untapped individuals through low-cost, high-efficiency USDT services. This not only expands the user base but also helps establish a localized network for USDT globally, similar to a retailer entering rural markets, exploring new growth points. More importantly, this wise inclusive strategy places Tether in a morally superior position in the regulatory game—"financial equality."

Is Decentralization the Voice of the Times?

Why is Decentralization the Voice of the Times? Tether Perfectly Answers with Real Action.

All centralized platforms and products have their own lifecycle. As centralized platforms mature, the platform's relationship with users transitions from attraction to rejection, and the platform's relationship with builders (developers, creators, businesses) also shifts from collaboration to competition. The simplest way to continue growing is to extract data from users, competing with complementors for audience and profit. Historical examples include Microsoft vs. Netscape, Google vs. Yelp, Facebook vs. Zynga, and Twitter vs. its third-party developers. People are starting to tire of the shackles brought by centralized platforms and are determined to break these chains.

Investing in decentralized technologies and products (Holepunch, Synonym, Rumble) reflects Tether's visionary view of the future internet. Holepunch's P2P communication and Synonym's Bitcoin protocol enhance USDT's resistance to censorship, while Rumble's decentralized video platform aligns with Tether's vision of financial freedom. These technologies enable USDT to circulate without centralized servers, reducing the risk of being blocked. This is akin to a company investing in its own logistics system to ensure goods are delivered in any environment. Tether may have anticipated that future regulatory pressures will intensify, and decentralized infrastructure will be its survival safeguard.

Cross-Industry Diversification Penetration

Lastly, cross-industry diversification in investment seems to be Tether's declaration of a future already here. The stablecoin has rapidly conquered the world in the past, despite some temporary setbacks.

Investments in Adecoagro could be used to explore the use of USDT in the traditional agricultural supply chain, Juventus's sports influence could promote USDT payments through a young and energetic fan base, and Blackrock Neurotech's brain-machine interface technology points to a futuristic scenario—perhaps one day, you can pay with your thoughts using USDT! The Academy of Digital Industries is nurturing crypto talent, injecting fresh blood into the long-term development of the crypto ecosystem. This cross-domain investment validates Tether's vision: stablecoins will penetrate traditional sectors such as agriculture, entertainment, and tech education, building a seamless financial ecosystem closely integrated with the real world, which is indeed the future of humanity!

Conclusion and Outlook

Tether seems to be attempting to invest in blockchain fundamentals, address regulatory challenges, expand payment applications, delve into emerging markets, strengthen decentralized technology, and diversify across industries to build a continuously growing and powerful investment portfolio and aims to create a full-fledged ecosystem from the ground up to the end-user. On the road to financial freedom, Tether is not alone.