Tether Expands Its Horizons: From Stablecoins to Football and Bitcoin Mining

Tether is proving it lives by the old saying: Don’t put all your eggs in one basket. This April, the stablecoin giant made headlines with two major announcements the launch of a Bitcoin-focused public company, Twenty One Capital, alongside Bitfinex, SoftBank, and Cantor Fitzgerald, and the expansion of its stake in Italian football powerhouse Juventus to over 10%.

These moves reflect Tether’s broader strategy to diversify beyond its flagship USDT stablecoin, a critical shift as regulatory scrutiny intensifies across global markets.

Tether’s Rise to Power with USDT

Launched in 2014, USDT quickly grew into the world’s largest stablecoin by market cap, becoming one of the top five cryptocurrencies. At its peak, USDT accounted for 50% to 80% of all Bitcoin trades, serving as a vital bridge for crypto exchanges that lack fiat trading pairs.

Beyond crypto trading, USDT plays a critical role in cross-border payments, acting as a USD substitute for businesses and traders alike. Tether-backed USDT with U.S. Treasury securities last year alone. Tether acquired $33.1 billion in Treasury bills, making it the seventh-largest foreign holder of U.S. debt, ahead of countries like Mexico, Canada, and Taiwan.

Tether’s Global Shift

Originally registered in the British Virgin Islands, Tether officially moved its headquarters to El Salvador in January, becoming part of the first country to embrace Bitcoin as legal tender. Ironically, soon after Tether’s relocation, El Salvador’s Congress reversed Bitcoin’s legal status, but Tether’s expansion continued undeterred.

USDT has remained especially valuable in regions with low banking infrastructure and in countries under heavy sanctions. In Africa, USDT acts both as a savings asset and a tool for remittances. Meanwhile, nations like Russia and Iran use USDT in foreign trade to navigate around economic sanctions.

However, the stablecoin is facing intense regulatory challenges. New European crypto regulations under MiCA (Markets in Crypto-Assets) prompted major exchanges like Coinbase, Kraken, Binance, and Crypto.com to delist USDT for EU customers. In the U.S., emerging laws and new competitors, such as former President Trump’s World Liberty Financial stablecoin, could pose fresh threats.

In response, Tether is reportedly working on a new stablecoin designed to comply with evolving regulations.

Facing Legal Scrutiny

Tether has also come under fire legally. In 2023, U.S. investigators accused the company of facilitating money laundering and sanctions violations. CEO Paolo Ardoino firmly denied these claims, stating:

"At Tether, we work closely with law enforcement to prevent misuse of USDT. We would know if we were under investigation — these allegations are entirely false." Losing critical markets like the EU and the U.S. would undoubtedly be a heavy blow. However, thanks to its expanding business portfolio, Tether is better positioned than ever to withstand such challenges.

Tether’s Growing Empire: Beyond Stablecoins

Tether’s ambitions extend far beyond USDT:

• Bitcoin Mining: Tether owns a 21% stake in Bitdeer, operates mining projects in Uruguay, and is a partner in El Salvador’s $1 billion “Volcano Energy” mining initiative. Back in 2023, Tether announced plans to invest $500 million in mining, including stakes in companies like Northern Data AG, and the development of mining centers across three countries.
• Artificial Intelligence: The company invested $200 million into Blackrock Neurotech, a leader in brain-computer interface technology, becoming its majority owner.
• Media and Payments: Tether backed Rumble with a $775 million investment, a platform popular among right-wing audiences, and supports Fizen, a payment service and self-custody wallet platform.
• Decentralized Development: Tether also launched Holepunch, a platform helping developers build applications without relying on centralized servers.

Other future projects teased by Ardoino on social media include a tokenization platform and solar-powered crypto kiosks across Africa, aimed at boosting crypto education and access.

Tether’s Resilient Vision

Even if USDT faces restrictions in multiple countries, Tether’s diversified portfolio shows it’s not a one-trick pony. Critics, however, argue that investing customer funds in ambitious ventures could be risky.

Yet, Ardoino remains steadfast. In a statement to Forbes, he emphasized:

"It’s good to have resilient money, but if everything else is centralized, it can collapse quickly. Our motto is ‘build for the apocalypse.’"

With that mindset, Tether seems determined to weather any storm and build an empire that goes far beyond stablecoins.