Tether, the blockchain company that issues USDT Stablecoin, has entered a new branch of Web3 before the end of 2024. The company has invested $2 million (about Rs 1.7 crore) in Arcanum Capital’s emerging technology fund II. Arcanum is a Web3-centric asset management company that fundes emerging projects related to blockchain, cryptocurrencies and other Web3 fields. According to a report by Cointelegraph, this is the first step in Tether’s investment space since its launch in 2014.
Through the investment, Tether hopes to contribute to the ongoing project of Holpunch Technology, a press release announcing the development said. The technology was created by a company called Hollepnch Platform, which eliminates the need for any servers operated by certain applications. Interestingly, both the Tether and Holepunch have the same parent company Ifinex.
“One example is Keet, a messaging application that allows users to call, text or video calls directly without relying on Central Server. Unlike other common messaging applications, Keet is still in the absence of a single failure without a single failure,” he said. Keep running, thus ensuring continuous and secure communication.”
Stablecoin is betting on this technological advancement, expecting significant improvements to the long-term decentralized social networks and financial ecosystem.
According to Tether CEO Paolo Ardoino, resilient technologies that can protect people’s freedom of speech and finance are demanded in geopolitical tensions across multiple regions of the world.
The release notes that a portion of the funds from Tether will also be concentrated on early-stage companies using USDT for payments and settlements. This version does not provide the same detailed details.
Meanwhile, Tether has made news this year for crypto-related funding plans. For example, Reuters reported that Howard Lutnick, chairman and CEO of BGC Group, is taking steps to strengthen his alliance with Tether. Lutnick is also responsible for the global fintech company Cantor Fitzgerald LP. According to the report, Cantor Fitzgerald LP has been linked to Tether with its multi-billion dollar plan to provide loans to customers who use Bitcoin as collateral.
Tether’s funding to Arcanum is reportedly its first crypto-focused investment plan, but it did announce a strategic investment (approximately Rs 6,633 crore) in video sharing platform and cloud service provider Rumble.
Previously, Tether found himself under a scanner of the U.S. government for allegations that it could violate sanctions and anti-money laundering rules. The company denied the claims.
