Tether, the world’s largest stablecoin issuer, is increasingly distancing itself from being known as just the company behind USDT. In a flurry of major announcements this April, Tether unveiled two critical moves: it teamed up with Bitfinex, SoftBank, and Cantor Fitzgerald to launch Twenty One Capital, a Bitcoin-focused public company, and separately increased its ownership stake in Italian football club Juventus to over 10%. These developments reflect a broader, strategic shift within Tether to aggressively diversify its business portfolio. With regulatory pressures tightening across key markets, Tether appears determined to insulate itself against potential threats to USDT’s dominance — positioning itself as a crypto-era conglomerate ready for long-term survival.
The Importance of USDT in the Crypto Ecosystem
Since launching in 2014, USDT has become an indispensable part of the cryptocurrency landscape. For much of the last decade, USDT served as the dominant liquidity instrument for Bitcoin trading, at times accounting for 50% to 80% of BTC transactions globally. In markets lacking robust fiat-to-crypto bridges, USDT filled the void as a USD proxy. It became a lifeline for exchanges operating in jurisdictions where direct USD transactions were restricted. Beyond trading, USDT played an essential role in cross-border settlements, allowing businesses and individuals to move funds internationally with minimal friction. Tether’s backing of USDT with U.S. Treasury securities further strengthened its position, with the firm acquiring over $33.1 billion in Treasuries, ranking it among the largest foreign holders ahead of countries like Canada and Taiwan.
Tether’s Global Expansion and Strategic Relocation
Tether’s ambitions have become increasingly global. In January, the company officially relocated its headquarters to El Salvador, the first country to adopt Bitcoin as legal tender. Ironically, shortly after Tether’s move, El Salvador’s Congress effectively ended Bitcoin’s legal tender status for new transactions. Nonetheless, Tether remains influential in emerging markets. In regions with weak banking infrastructure — such as parts of Africa, Russia, and Iran — USDT continues to thrive as a tool for both savings and trade, particularly as a workaround for international sanctions. However, Tether’s prominence has not shielded it from growing regulatory scrutiny. In Europe, Tether’s failure to fully comply with the Markets in Crypto Assets (MiCA) regulation led to USDT being delisted from major exchanges like Binance, Coinbase, and Kraken for EU customers. Similarly, looming U.S. regulatory reforms — including potential competition from Trump-backed World Liberty Financial’s upcoming stablecoin — have raised concerns over USDT’s long-term status in American markets.
Facing Legal Scrutiny and Preparing for a Post-USDT Future
Amid mounting regulatory challenges, Tether has faced allegations of money laundering and sanctions violations, although CEO Paolo Ardoino vehemently denies wrongdoing. In an October statement, Ardoino stressed Tether’s ongoing cooperation with law enforcement agencies worldwide. Nonetheless, the threat of losing access to U.S. and European markets has pushed Tether to hedge its future aggressively. One option reportedly under discussion is the development of a new stablecoin tailored to comply with stricter regulatory frameworks. Meanwhile, Tether’s diversification efforts have accelerated at an unprecedented pace.
A Growing Empire: Bitcoin Mining, AI, Payments, and More
Beyond USDT, Tether is rapidly building a diverse portfolio of ventures. It holds a significant 21% stake in Bitcoin mining firm Bitdeer and has mining operations underway in Uruguay. Tether is also co-developing Volcano Energy, a $1 billion Bitcoin mining farm project in El Salvador. Further, it has invested heavily in artificial intelligence by securing a controlling interest in Blackrock Neurotech, a leading brain-computer interface company. In the payments sector, Tether has invested in Fizen, a self-custody crypto wallet startup, and launched Holepunch, a project aiming to create serverless decentralized applications.
Additionally, Tether made headlines by investing $775 million into Rumble, a video streaming platform popular among conservative audiences. Other initiatives hinted at by Ardoino include the creation of tokenization platforms and crypto education kiosks in Africa. These ventures show Tether’s ambition to weave itself into the fabric of various high-growth industries, from AI to energy to fintech — ensuring it remains relevant even if USDT’s market share declines.
Building for Resilience in an Uncertain Future
Tether’s strategy seems built around one core principle: survival through decentralization and diversification. Ardoino summed up the company’s philosophy with a striking remark: “It’s good to have resilient money, but if you only have resilient money and everything else is centralized, it can be destroyed quickly. One of our mottos is ‘build for the apocalypse’.” Even if regulatory crackdowns severely restrict USDT’s use, Tether’s sprawling web of investments suggests it intends to outlast any single-product failure. While critics remain wary about Tether’s aggressive asset deployment — often funded by customer reserves — it’s clear the company is no longer relying solely on USDT for its future.
