Tether Goes Big: 120-Portfolio Expansion Marks Aggressive USDT Diversification Strategy

Tether just dropped a bombshell—120 new portfolio companies now back its stablecoin empire. No more 'all eggs in one basket' for the world's largest digital dollar.

Diversification or desperation? The crypto giant's latest move screams institutional ambition—while quietly admitting what we all knew: even stablecoins need more than fiat reserves to stay relevant.

Wall Street's watching. Because nothing says 'maturity' like a $68B stablecoin player suddenly playing venture capitalist. (But hey—at least they're not buying another yacht.)

Tether, a major stablecoin issuer, recently shared parts of its investment portfolio. The company revealed that it has invested $13.7 billion in over 120 companies.

These companies operate in sectors like artificial intelligence, blockchain, energy, and payments.

Tether said the MOVE is part of its effort to diversify beyond its stablecoin reserves.

Tether Shares Details of Expanding Venture Portfolio

Tether announced on July 23 that it had invested in more than 120 companies using profits earned in 2024.

The company stated that the investments, valued at $13.7 billion, were made through its venture arm and do not involve reserves backing USDT or other stablecoins.

The company’s CEO, Paolo Ardoino, stated that the portfolio will continue to expand. The disclosed list includes names such as Bitdeer, Crystal Intelligence, Juventus, Rumble, and Shiga Digital.

Tether stated that the goal is to support innovation across several industries. This includes payments, artificial intelligence, agriculture, tokenization, and renewable energy.

Market participants believe that Bitdeer’s inclusion shows a strong interest in Bitcoin mining.

The company operates in the United States, Norway, and Bhutan, and reports a 98% system uptime.

Additionally, Crystal Intelligence is a blockchain analytics firm that is involved in regulatory developments in the UK and the European Union.

More importantly, Tether described these investments as part of its broader plan to support infrastructure in the digital asset space.

The company emphasized that the funding comes strictly from its earnings. It noted that customer-backed reserves for stablecoins, such as USDT, remain separate and untouched.

MiCA Rules Prompt Careful Positioning in the EU

In a comment under the post on X, a user inquired whether USDT WOULD be subject to the EU’s new MiCA regulation in Europe.

Paolo Ardoino responded briefly, saying the company might reconsider when the rules are safer for users and issuers.

He said the company may reconsider entering the market once MiCA is safer for both users and issuers.

MiCA sets rules for stablecoins and crypto assets across the European Union. It focuses on consumer protection, reserve requirements, and transparent reporting from asset issuers.

It is worth mentioning that the regulation took effect earlier this year. This creates a more structured framework for companies looking to operate in the region.

However, Tether did not give any further details about its EU plans. The company’s statement suggests it is observing the new rules before deciding on any next steps. For now, USDt remains unavailable in the EU.

Tether Plans Two-Track Stablecoin Entry into U.S. Market

In a separate development, Tether revealed that it will take a dual approach to entering the U.S. market.

According to the update, it plans to launch a new stablecoin designed for domestic users while maintaining USDT under a separate legal route.

This is because the route is provided by the GENIUS Act, which sets federal rules for stablecoin issuers based outside the United States.

Notably, the law requires full backing of stablecoins with reserves and regular public disclosures.

Still, critics have raised concerns about Tether’s ability to meet these conditions, based on its past reserve practices.

Ardoino said Tether is committed to meeting the standards. He explained that the company will conduct thorough audits and enhance its anti-money laundering controls.

He added that the company has a three-year plan in place to achieve full compliance.

Tether expects USDT to focus on cross-border transfers, while the new U.S.-based coin will serve local users.

The company believes that this strategy will enable it to meet various regulatory requirements while expanding its reach.