Tether Investments: What a $100B stablecoin empire does with its profits
Tether is one of the most important financial conglomerates in the world. It operates the stablecoin with the largest market capitalization and has investments in cryptocurrency, payments processing, video streaming, artificial intelligence, brain-computer interfaces, farmland, satellites, football, and more.
These investments serve to expand the company’s reach and influence, and may someday, presumably, result in substantial financial benefits if they’re successful.
Tether’s Chief Executive Officer (CEO), Paolo Ardoino, has previously disclosed that Tether has invested in more than 120 companies, though it discloses only 24 on its “Tether Ventures” page.
This list has also changed over time. At the time of its launch (as confirmed by Ardoino’s screenshot and archives) it included OrionX, a firm that Tether described in a since-deleted blog post as “one of the leading Chilean digital asset exchanges.”
Protos reached out to Tether for clarification on why this has been removed from Tether’s website, but it didn’t respond before publication.
There are a number of other investments that have been reported — and sometimes even mentioned on Tether’s own website — that for some reason don’t make this webpage.
Read more: Let’s talk about Tether’s investments
Samson Mow’s firms
Samson Mow, the former Chief Strategy Officer (CSO) of Blockstream, has repeatedly received investment from Tether.
The oldest of these was Tether’s investment in the security token offering for Exordium, the Mow-founded game publisher behind the Infinite Fleet game.
Exordium uses Tether-funded Holepunch to distribute its game client.
The Exordium website also claims that its security token is still offered on Bitfinex Securities, a sister firm to Tether. However, a review of the Bitfinex Securities website doesn’t include it among the currently trading tickers.
Exordium isn’t the only Mow-founded firm that Tether has invested in, as it’s also invested in Jan3.
Jan3 raised funds from Tether to “accelerate the development and expansion of the AQUA Wallet.”
Additionally, Blockstream received funding from iFinex, one of the firms that operates the Bitfinex platform.
Read more: Samson Mow claims Peter Todd was ‘paid’ for OP_RETURN PR
Celsius
Tether was also an equity investor in Celsius, a now-defunct cryptocurrency lender that engaged in widespread fraud.
Alex Mashinsky, the founder and former CEO of Celsius, was recently sentenced to 12 years in prison.
It makes sense that this investment isn’t included on the Tether Ventures page since it’s effectively valueless after the fraudulent platform’s collapse.
Besides investing, Tether also provided loans to Celsius, and the liquidation of those loans ended up being a serious point of contention in the bankruptcy proceedings for Celsius.
This lawsuit was recently settled with a $299.5 million settlement.
Volcano Energy
Volcano Energy is a Salvadoran bitcoin (BTC) mining project that originally intended to use geothermal energy from a volcano to power a suite of BTC mining rigs.
Tether described its aim as “following on its mission to invest in renewable energy sources to support and promote sustainable BTC mining.”
Since then, Volcano Energy has pivoted away from volcanoes to instead focus on wind and solar power, according to its website.
The project has yet to start mining any BTC.
Tether Uruguay/Microfin
Tether has also invested in BTC mining in Uruguay, in partnership with local firm Microfin.
Tether described this investment as demonstrating its “commitment to energy innovation and the future of cryptocurrency.”
In September of this year, it was reported that Tether was abandoning the project amid unpaid energy bills, but at the time Tether told Cointelegraph, “Tether remains supportive of these efforts and of a constructive path forward that reflects our long-term commitment to sustainable opportunities in the region.”
Since then, Tether has officially abandoned the project, according to reports from El Observador, citing energy costs that make it no longer economically worthwhile.
Tether’s Special Project Services
Tether also has several projects that fall under the remit of its “Special Project Services,” which are led by Davide Rovelli.
Among these is Plan B, the Switzerland-based cryptocurrency conference, which operates through AltKey SA, led by Rovelli.
The stated goal of Plan B is to build “a European crypto hub in Lugano.”
Read more: Tether to spend profits on growing its mysterious bitcoin reserves
A self-described “prodigy” of Plan B is the Luganodes staking-as-a-service provider.
The provider focuses primarily on Justin Sun-founded Tron, the chain with the second highest issuance of USDT tokens.
2040 Energy/Proton
2040 Energy was a joint effort between Tether and Swan.
This project eventually devolved into lawsuits alleging that Tether convinced consultants associated with it to leave 2040 Energy and instead start Proton Management, a project more closely associated with Tether.
Both 2040 Energy and Proton Management were funded by Tether.
Read more: Bitcoin mining firm Proton says Swan lawsuit ‘fatally flawed’
Recently Proton Management was able to successfully compel arbitration in the case in the Central District of California.
These projects represent only one portion of Tether’s growth into a major funder of the BTC mining ecosystem.
Satellogic
Tether has even taken its investments into space, investing in Satellogic, a firm that operates satellites and sells the observation data it collects.
Satellogic’s press release announcing the investment noted that these funds “will help advance our mission as we continue to focus on our US strategy, the national security market, and our global space systems opportunities.”
In October, Satellogic announced that it would be selling a portion of its equity in a public offering.
Parfin
Parfin is described in a Tether blog post as “a platform for digital asset custody, tokenization, trading, and management in Latin America.”
This investment was part of what Ardoino described as Tether’s “belief in Latin America as one of the global powerhouses for blockchain innovations.”
Among other features, the Parfin platform advertises that it offers a compliance-as-a-service manager, marketed towards other financial institutions.
Parfin has also launched a product it calls Rayls, which is described as “the blockchain for banks.”
According to data from CoinMarketCap, the market capitalization of the token associated with this project is $44 million.
Ledn
Ledn is a BTC lending platform that Ardoino described as “expanding access to credit without requiring individuals to sell their digital assets.”
Ledn was one of the smaller lenders that lent to Alameda Research, though after the collapse of FTX and Alameda, it claimed that it had “fully absorbed the impact of our outstanding loan with Alameda” and further noted that “Ledn also held some assets on FTX, which also has no impact on our clients’ assets.”
Ledn had also previously relied on Genesis Global Capital as a partner but supposedly terminated that relationship before the collapse of Genesis.
These problems occurred well before Tether’s investment in the firm.
Kotani Pay
Kotani Pay is described in a Tether blog post as “an on-ramp/off-ramp infrastructure that connects Web3 users to local payment channels across Africa.”
It advertises that it enables conversion of a variety of local currencies into cryptocurrencies.
Additionally, it offers what it describes as a “stablecoin settlement solution,” meant to help facilitate cross-border payments that it advertises as faster than banks.
Bit2Me
Bit2Me is described in a Tether blog post as “the leading Spanish-speaking digital asset platform.”
It offers exchange services, as well as an “Earn” product, a “Loan” product that lets you take cryptocurrency-collateralized loans, and a “Blockchain Stock Exchange.”
It has an exchange token, B2M, which according to self-reported data on CoinMarketCap, has seen its market capitalization fall from a peak of approximately $550 million to just $58 million.
Pave Bank
One of Tether’s most recent investments is in Pave Bank, a Georgia-regulated bank that promises “global, secure, multi-asset banking” and “programmable banking.”
The firm claims to be “a technology company when it comes to product design and build, and a fully regulated bank when it comes to risk, capital and regulatory management.”
Prestige Wealth
Prestige Wealth, or Aurelion, is a strange firm. It’s similar to other Digital Asset Treasury (DAT) firms, except that the asset it invests in is Tether Gold, a tokenized version of a so-called Real World Asset (RWA).
Tether invested in this firm, as it was fundraising to purchase Tether Gold.
A substantial part of its private investment in public equity funding was contributed in the form of tether (USDT) tokens.
In the press release announcing this investment, Björn Schmidtke, the CEO of Aurelion, noted that “This isn’t about yield or finance: it’s about redefining how real wealth is held, moved, and preserved in the digital era.”
Further down in the press release, it claims that Aurelion is “offering yield, transparency, regulatory compliance and daily on-chain verification.”
Pointsville
Pointsville is another firm focused on tokenizing RWAs and offering loyalty programs.
This one is led by Gabor Gurbacs, whose LinkedIn profile lists him as the chief strategy advisor to Tether.
Ardoino, in a press release describing this raise, said, “Tokenization is rapidly emerging as one of the most practical and impactful drivers of real-world asset adoption.
“Hadron by Tether is proud to support this transformation, collaborating with Pointsville’s experienced team to deliver the scale and usability required to integrate real-world assets and loyalty programs into the digital economy.”
Transak
Transak describes itself as “a global leader in fiat-to-crypto infrastructure,” and Ardoino described it as “accelerating adoption across both emerging and developed markets, bridging gaps in financial access, and enabling new opportunities for businesses and consumers alike.”
It offers OTC trading services as well as its on-ramps and off-ramps.
Unlike the investments so far, there are other Tether investments that are important enough to make the website.
Rumble and Northern Data
When Tether invested in Northern Data, it was a data center and BTC mining firm.
Tether quickly became the majority owner and since then, Northern Data has spun out its mining business as Peak Mining and has focused intensely on artificial intelligence (AI).
Read more: Christian Angermayer helped Wirecard, now he helps Tether
Tether has also invested in Rumble, a video-streaming website popular among right-wing figures, especially those who have been banned from Twitch.
Since then, Rumble has acquired Northern Data in a deal that made Tether approximately a 30% equity holder in Rumble.
Besides adding cryptocurrency to its balance sheet, Rumble has also brought on Tether as an anchor advertising client, with Tether agreeing to spend $100 million in advertising.
Read more: So you don’t have to: Watching BitBoy and Trump Jr. talk about crypto
Rumble’s most recent earnings call discussed the firm’s intent to focus on becoming a self-described “freedom-first” AI infrastructure firm.
Ardoino was featured heavily on the call, at one point claiming that “Rumble’s vision aligns perfectly with ours.”
Rumble CEO Chris Pavlovski also claimed on the call that Rumble will be expanding its cryptocurrency-based Rumble Wallet to its whole user base this month.
1789 Capital, the venture capital firm where Donald Trump Jr. is a partner, has also invested in Rumble.
Bitdeer
Jihan Wu has a long history in the BTC mining industry, as he was one of the founders and the former CEO of Bitmain.
Now, he leads Bitdeer, a firm that was spun out from Bitmain and that’s publicly traded on the Nasdaq.
Tether has invested in Bitdeer, reaching a peak holding of over 20% of the firm’s equity before reducing its stake to approximately 18%.
CityPay.io
CityPay.io is a Georgia-based firm that focuses on helping merchants accept cryptocurrency payments.
When Tether invested in this firm, it stated that it would be part of “its increased presence in Georgia.”
Ardoino stated that Tether was “excited to be working with CityPay.io to bring greater innovation and efficiency to the payment industry in Georgia.”
Fizen
Fizen is described in a Tether blog post as a “company specializing in self-custody crypto wallets and digital payments.”
Fizen’s website advertises that it enables you to “earn as you move” and promotes your ability to “enjoy yield on the go.”
Ardoino stated that this investment “underscores our commitment to expanding global access to efficient and reliable digital financial solutions that promote the informed responsible use of digital assets in everyday life.”
Kem
Kem is described in a Tether blog post as “a platform designed for money transfers and financial management” that operates largely in the Middle East and North Africa.
Ardoino described the investment as reinforcing “Tether’s commitment to promoting financial inclusion and stability.”
Kem’s website describes it as “The First Crypto Bank.”
It doesn’t appear that Kem is actually a bank; it certainly isn’t the first bank to try to service the cryptocurrency industry.
However, its website does note that “Kem operates through Kemfinity s.r.o. (Company Number: 221 62 194), a VASP-licensed entity in the Czech Republic.”
Sorted Wallet
Sorted Wallet is described by Tether as a platform that “offers secure and accessible cryptocurrency transactions, bridging the gap for unbanked and underbanked individuals in developing regions.”
Besides offering a wallet, it also advertises that it can help you “cash-out USDt to your Bank, Airtime or Mobile Money.”
Ardoino claims that “by supporting Sorted Wallet, we unlock new opportunities for individuals with basic mobile phones to participate in the financial system.
“Our goal is to ensure that everyone, regardless of location or phone type, can securely manage and utilize cryptocurrency, empowering them to build a more secure financial future and actively engage in the evolving digital economy.”
Synonym
Synonym is a BTC wallet provider that includes Lightning features and is described on its website as “a Tether company.”
Besides the wallet, the firm is also behind Pubky, which its website describes as an app that “is powered by a new decentralized protocol and includes features for social tagging and social curation.”
Additionally, it offers Atomicity, which it describes as a “P2P mutual credit system” that enables “commerce and coordination beyond Big Bank credit cards.”
Shiga
Shiga Digital is described in a Tether blog post as “a modern platform that offers pan-African access to blockchain-based financial solutions, usable in the real world and easily accessible.
“Shiga Digital offers virtual accounts, OTC services, treasury management, and foreign exchange services tailored to African enterprises.”
Its website offers to “empower your business with decentralized banking solutions.”
Shiga claims to be a virtual assets service provider licensed in the European Union but doesn’t seem to literally be a bank.
XREX
XREX is described on the Tether Ventures page as “a provider of USDt-based cross-border B2B payments in emerging markets” and on its website as “transforming the future of banking.”
Its website claims to be a FinCEN regulated money service business, a Singapore licensed major payment institution, and a Taiwan licensed VASP AML registrant.
Its website does not seem to mention any banking charters.
Tether’s post about its investment claims that the investment will enable XREX to “facilitate compliant, USDT-based cross-border B2B payments in emerging markets.”
Additionally, the post claims that “XREX will work with the Unitas Foundation to launch XAU1, a USD-pegged unitized stablecoin over-reserved with Tether Gold (XAUt).”
StablR and Quantoz
StablR is launching stablecoins in Europe that are meant to be in compliance with the Markets in Crypto-Assets Regulation (MiCA) framework and rely on the Hadron tokenization platform created by Tether.
Quantoz is another firm that intends to launch MiCA-compliant stablecoins in Europe while leveraging Tether’s Hadron platform.
Tether used to offer its own euro-pegged stablecoin, EURT, but that’s been wound down.
Blackrock Neurotech
Perhaps the strangest Tether investment is Blackrock Neurotech, which is a company working on developing brain-computer interfaces.
This investment is under the “Tether Evo” umbrella.
The Tether Evo website claims, “Tether stands at the intersection of innovation and human potential, dedicated to propelling humanity into a future where technology and human capabilities merge in unprecedented ways.”
Academy of Digital Industries
Tether also invested in the Academy of Digital Industries, an online training and education platform based out of Georgia.
The investment supposedly allowed the platform to increase its offerings related to “Bitcoin, stablecoins, peer-to-peer technologies, and AI.”
Be Water
Be Water is described by Tether in the blog post announcing its investment as “an innovative media company specializing in the production and distribution of audio, video, film, and live content.”
Ardoino stated that this investment is compatible with Tether’s belief in “the importance of independent media in shaping informed societies.”
Crystal Intelligence
Tether’s investment in Crystal Intelligence, a blockchain analytics firm, seems compatible with its desire “to combat illicit stablecoin use by supporting law enforcement and building a more secure and resilient digital asset ecosystem.”
Tether also partners with Chainalysis, a competitor to Crystal Intelligence, integrating it into the Tether Hadron platform.
Elemental Altus
Tether has also invested in Elemental Altus, a precious metals royalty firm.
Ardoino described the investment as compatible with Tether’s “long-standing belief that tangible assets like BTC and gold will underpin the most durable forms of digital value.”
Holepunch
Tether and sister firm Bitfinex are also behind Holepunch, which is an encrypted peer-to-peer communication platform that provides the Keet video-chatting application.
Ardoino is also the chief strategy officer for Holepunch.
Juventus Football Club
One of the more inexplicable investments is Juventus Football Club, which Tether tried to describe as an opportunity “to integrate its futuristic portfolio into the realms of the sports industry.”
It also appears that Tether hopes that this will be an opportunity to integrate “stablecoins, digital assets, and human-first technology into everyday life.”
Zengo Wallet
Tether describes this project as “a leading self-custodial crypto wallet known for its focus on security and usability” and further claims that Zengo has served 1.5 million users “without a single wallet being hacked, phished, or taken over.”
Zengo is a multi-party computation wallet that splits the secret to secure your cryptocurrency between your own mobile device and Zengo’s servers.
Mansa
Mansa claims to provide revolving lines of credit to payment firms to help facilitate transaction settling and rapid funding of customer accounts.
Additionally, its website describes other services it offers, including over-the-counter Forex trading and “Virtual Card Processors.”
Oobit
Tether describes Oobit as “a mobile payment application.”
Ardoino stated that Tether’s investment was part of Tether and Oobit’s “mutual vision to drive the widespread adoption of cryptocurrencies on a global scale.”
Adecoagro
Adecoagro is an agricultural conglomerate that also invests in energy production.
After Tether purchased a majority stake in the firm, it announced a memorandum of understanding “to explore a strategic collaboration focused on BTC mining.”
NAKA
NAKA is a firm that claims to be working on a “self-custody payment card.”
Data from Crunchbase suggests that Tether has invested in it.
Twenty One
Finally, there’s Twenty One, the Jack Mallers-led and Tether-owned DAT that launched in cooperation with Cantor Fitzgerald, Tether’s most important custodian.
Twenty One’s website claims that it currently holds 43,514 BTC.
Protos has only been able to identify approximately one out of every four investments that Tether has made, assuming Ardoino’s “120+” is still accurate.
The ones Protos has identified show a far-reaching financial firm with its fingers in pies both inside and outside of the cryptocurrency industry, and the remaining investments are almost entirely unknown, making it almost impossible to assess Tether’s complete reach and influence.
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