Tether, the world’s largest stablecoin USDT issuer, has expanded its operating structure by adding four new strategic divisions: Tether Data, Tether Finance, Tether Power, and Tether Edu. It was posted on X that it had been reorganized.
Tether has added four divisions, including Tether Data, Tether Finance, Tether Power, and Tether Edu.
This development is part of Tether’s plan to expand beyond its stablecoin offering. USDT’s market capitalization is currently around $107 billion, well ahead of the second-largest stablecoin, USDC.
Through its new venture, Tether aims to create a forward-thinking financial and technology ecosystem, promoting financial freedom, decentralization, and widespread adoption of digital assets.
Tether’s New Goals
The company’s goal is solutions that can adapt to the needs of individuals and communities while keeping sustainability in mind. They want to financially empower individuals and communities.
According to Tether, Tether Data invests in and develops new technologies such as artificial intelligence (AI) and peer-to-peer platforms. Previously, Tether announced a venture into AI. The company seeks to set new standards in the industry through its open source AI models.
Tether Finance focuses on traditional stablecoin products and financial services with the goal of leveraging blockchain technology to build a more democratic financial system. The company also unveils its upcoming digital asset tokenization platform.
a wider net
Tether CEO Paolo Ardoino said Monday that Tether will launch a tokenization platform. As mentioned, the new platform supports multiple chains and tokens and is non-custodial. Ardoino added that he can tokenize anything, including funds or coffee reward points.
Moreover, Tether Power has entered into sustainable Bitcoin mining operations to ensure the security of the Bitcoin network. Lastly, Tether Edu aims to provide education and awareness about digital technologies such as blockchain. The company has partnered with a variety of organizations to promote widespread adoption of these technologies.
“With these advancements beyond traditional stablecoin offerings, we are ready to build and support the invention and implementation of cutting-edge technologies that remove the limits of what is possible in this world.” Ardoino said. “We use technology to empower individuals, communities, cities and countries to become self-reliant, independent and free. Together we cannot stop it.”
Last year, Tether stepped up its Bitcoin mining operations in Uruguay and focused on payment processing in the country of Georgia. The company recently revealed that its $500 million investment in Bitcoin mining is nearly complete.
In the Ai space, Tether lent $610 million to cloud data services provider Northern Data Group and invested $420 million to purchase GPUs from Nvidia. The move already signaled the company’s plans to expand its focus into AI.
Regulators want more information
Meanwhile, Tether is still subject to strong supervision over asset guarantee issues against USDT. The largest stablecoin issuer in the cryptocurrency market achieved revenue of up to $6.2 billion in 2023.
In an interview with DL News, Tether CEO Paolo Ardoino said the reason the company has yet to receive an asset audit report is because the Big 4 giants have refused to provide the service. These companies are likely fearful that their reputation will be damaged if they collaborate with Tether.
Nonetheless, Ardoino said Tether’s top priority is working with one of these auditors.
In addition to being the force behind the dominant stablecoin, Tether is also one of the largest Bitcoin holders. It is reported that Tether’s Bitcoin holdings are 75,354, worth approximately $5.24 billion. The company recently added 8.888 Bitcoin to its holdings.
Many other companies, such as MicroStrategy and El Salvador, have also been actively adding Bitcoin to their holdings since late last year.
Tether first announced its Bitcoin investment in its Q1 2023 asset verification report. At the time, the company added that it would deduct 15% of retained earnings each month to reallocate reserve assets from government bonds to Bitcoin.