Tether is no longer satisfied with the marginal competition of stablecoin issuance, but is seizing the high ground of the Crypto Assets ecosystem through diversified investment布局, strengthening the Matthew effect, and exploring emerging market growth points.

Written by: AllScale Insights

What is the stablecoin giant Tether investing in?

The stablecoin giant Tether recently disclosed a list of companies in which it has invested using its own funds. Among these companies are mining and computing power support firms like Bitdeer and Northern Data, as well as decentralized technology infrastructure companies like Holepunch and Synonym.

It is evident that Tether is not satisfied with engaging in chaotic competition for diminishing marginal returns in the issuance of stablecoins. On the contrary, they are learning from the experiences of Microsoft, Apple, and Google, attempting to seize the high ground in the cross-industry Crypto Assets ecosystem through diversified investment layouts, further solidifying the Matthew effect, and seeking growth points in cross-industry layouts and emerging markets. Tether is no longer merely pursuing profits from the issuance phase but is trying to play a deeper role in the crypto world—being both a provider of stable payment tools and a driver of technological innovation, even reshaping the global financial landscape.

The stablecoin industry is a forest, and to prevent seeing only the trees and not the forest, it is necessary to take a bird's-eye view of the entire industry's ecological map. The upstream of the industry consists of blockchain infrastructure and analysis monitoring, providing standardized ecological components such as blockchain networks, on-chain data analysis, compliance monitoring, and risk assessment; they are like the source of stablecoins. The midstream of the industry mainly includes stablecoin issuers and liquidity & yield, which are the core of the value chain of the entire industry. Tether is a stablecoin issuer in the midstream of the industry. The downstream of the industry brings us broader and more diverse application scenarios, from trading to payments, from individuals to enterprises, and from the integration of Defi to traditional finance. These enterprises directly provide services to end users and are constantly exploring new business models and application selling points.

Backward investment and forward investment make 1+1>2

Although Tether Venture has invested in numerous companies, we can still analyze the strategic intentions of the portfolio and assess the development direction of the stablecoin industry. Let's analyze from a strategic perspective why Tether chooses these companies as investment focuses. By breaking down the portfolio of 25 companies disclosed on the Tether Venture official website, we can derive the following classifications.

Infrastructure is the basis for the circulation of USDT

First of all, blockchain infrastructure and mining (such as Bitdeer, Northern Data, Elemental Altus Royalties) are the lifeblood of the Tether ecosystem. Therefore, Tether Venture achieves backward integration by investing in these upstream infrastructure and mining companies to strengthen control and bargaining power over upstream enterprises.

Specifically, blockchain networks such as Bitcoin and Ethereum serve as the foundation for the circulation of USDT, while mining power directly determines the stability and security of these networks. By investing in mining giants like Bitdeer, Tether is effectively nurturing its own survival soil, ensuring the smooth operation of USDT in a multi-chain environment.

Northern Data's high-performance computing capabilities provide a technological reserve for the future expansion of blockchain and data-intensive applications (such as DeFi or NFT), and may even lay the groundwork for Tether's AI-related plans.

The mining rights investment of Elemental Altus acts like a safety net of tangible assets for the USDT ecosystem, diversifying risks while paving the way for long-term returns. Tether knows that if the underlying blockchain wavers, the status of USDT will also be precarious, so it chooses to enhance its voice and influence in the blockchain infrastructure field through backward integration, paving the way for the long-term development of the enterprise.

Compliance and Security Technologies Shape Trust

Secondly, the investment in compliance and security technologies (Crystal Intelligence, Zengo) reflects Tether's dual consideration of regulatory pressure and user trust. As a company often questioned about the transparency of its reserves, Tether understands that narrating trust to users through a compliant posture is key to survival.

Crystal Intelligence's blockchain analysis tools not only help trace illegal activities but also demonstrate their commitment to compliance to regulators and the public, shaping a positive industry image. This is a proactive defense posture; no one knows when the next avalanche will come. Meanwhile, Zengo's keyless wallet directly addresses user pain points—complex private key management deters ordinary people. Through this technological innovation, Tether has reduced the usage and circulation difficulty of USDT, bridging the gap with the public and expanding its potential user base. Behind this is its ambition to penetrate the mainstream market, attempting to transform stablecoins from high-end geek toys into tools for the masses.

Financial service companies at the application layer are the capillaries of USDT

In the direction of forward integration, Tether has invested in many companies in the payment and financial services sectors, such as CityPay.io, Oobit, and Xrex. The vitality of Tether does not lie in the huge fluctuations of its market capitalization, but in each payment transaction; this is where the vitality of TetherUSDT resides. The invested companies have transformed USDT from a digital asset into a daily payment tool, such as Oobit's NFC payment, which almost replicates the convenience of Apple Pay, while Xrex provides cross-border payment solutions for small and medium-sized enterprises. Traditional finance certainly has its shortcomings, but to break the path dependence, it must rely on changes in the last mile of payment and the transformation of financial capillaries.

The layout of financial inclusion and emerging markets (SortedWallet, Mansa, Quantoz, Orionx) showcases Tether's global vision. SortedWallet brings crypto wallets to unbanked populations in Africa and South Asia, Mansa optimizes cross-border payments, while Quantoz and Orionx pave the way in Europe and Latin America. These regions are often blind spots for traditional financial services, harboring a large number of vulnerable groups under unbanked traditional financial systems. Tether sees an opportunity: to serve billions of untouched populations through low-cost, high-efficiency USDT services. This not only expands the user base but also helps establish a localized network for USDT globally, similar to a retailer entering rural markets to tap into new growth points. More importantly, this prudent inclusive strategy allows Tether to occupy a moral high ground in the regulatory game — 'financial equity.'

Decentralization is the voice of the era

Why is decentralization the voice of the era? Tether perfectly answers with practical actions.

All centralized platforms and products have their own life cycles. As centralized platforms mature, their relationship with users shifts from attraction to exclusion, and their relationship with builders (developers, creators, businesses) shifts from cooperation to competition. The simplest way to continue growing is to extract data from users and compete with complementors for audiences and profits. Historical examples include Microsoft vs. Netscape, Google vs. Yelp, Facebook vs. Zynga, and Twitter vs. what it does to its third-party customers. People are beginning to grow weary of the shackles imposed by centralized platforms and are determined to break these chains.

Investment in decentralized technologies and products (Holepunch, Synonym, Rumble) reflects Tether's visionary outlook on the future of the internet. Holepunch's P2P communication and Synonym's Bitcoin protocol enhance USDT's censorship resistance, while Rumble's decentralized video platform resonates with Tether's free finance philosophy. These technologies enable USDT to circulate without centralized servers, reducing the risk of being blocked. It's like a company investing in its logistics system to ensure goods can be delivered in any environment. Tether may have foreseen that future regulatory pressures would intensify, and decentralized infrastructure would be its safeguard for survival.

Cross-industry Diversification Penetration

Finally, cross-industry diversified investment seems to be Tether declaring that the future has arrived. The stablecoin has rapidly conquered the world in the past, despite experiencing occasional setbacks.

Investments in agriculture by Adecoagro may be used to explore the application of USDT in traditional agricultural supply chains, while Juventus's sports influence can promote USDT payments through a young and vibrant fanbase. Blackrock Neurotech's brain-machine interface technology points to a sci-fi future—perhaps one day, you could pay with USDT using just your thoughts! The Academy of Digital Industries cultivates crypto talent, injecting fresh blood into the long-term development of the crypto ecosystem. This cross-industry investment proves Tether's vision: stablecoins will permeate traditional fields such as agriculture, entertainment, and technology education, constructing a financial ecosystem that seamlessly connects with the real world, which is the future of humanity!

Conclusion and Outlook

Tether appears to be strategically investing in a series of initiatives to comprehensively lay out its future development blueprint, aiming to build a continuously growing and highly competitive portfolio while creating a comprehensive ecosystem that spans from underlying infrastructure to end applications.

Specifically, Tether actively invests in the foundational aspects of blockchain, such as mining and computing power support enterprises, to ensure the stability and security of the network on which USDT circulation relies; at the same time, by investing in compliance and security technologies (such as blockchain analysis tools and keyless wallets), it effectively addresses the increasing regulatory challenges, enhances user trust, and consolidates its market position.

In addition, Tether is committed to expanding the payment application field by investing in payment and financial service companies, transforming USDT from a digital asset into a payment tool for everyday use, thereby further enhancing its practicality. Deepening its presence in emerging markets is an important part of its globalization strategy, supporting regions like Africa and South Asia that have not been fully covered by traditional finance, serving the unbanked population and uncovering new growth points.

At the same time, Tether is strengthening its investment in decentralized technology, such as P2P communication and anti-censorship protocols, to reduce the risk of being blocked and adapt to future internet trends. Finally, the cross-border diversified investment layout—covering traditional fields such as agriculture, sports, and brain-computer interfaces—demonstrates Tether's ambition to penetrate more industries with its stablecoin, building a financial ecosystem that seamlessly connects with the real world, thereby establishing its leadership in the global Crypto Assets market.