Tether Backs Ark Labs to Bring Stablecoins Back to Bitcoin

USDT issuer Tether has made a strategic investment in Ark Labs, the team developing Arkade, a programmable infrastructure layer for Bitcoin.

The $5.2 million funding round is aimed at expanding stablecoin access on the Bitcoin network and brings the total funding raised by Ark Labs to $7.7 million. Arkade is designed to enable instant, programmable transactions on Bitcoin for both retail users and financial institutions, positioning the network as a more viable platform for everyday payments and commerce.

“Improving access to USD₮ on the most secure and widely recognized blockchain supports greater financial inclusion, more efficient cross-border payments, and stronger global liquidity,” said Tether CEO Paolo Ardoino in a blog post.

Ark Labs CEO Marco Argentieri said Bitcoin has long lacked the programmable infrastructure needed for financial applications, and that Tether’s involvement would help accelerate development of payments, lending, and digital asset solutions being built on Arkade.

The Ark Labs deal is part of a broader infrastructure push. Last week, Tether led a $7.5 million raise for Utexo, a startup building Bitcoin-native USDT settlement rails using Lightning and RGB technology.

Launched in 2014, USDT has grown into the dominant force in the stablecoin market. USDT currently has a market cap of roughly $183 billion, making it the largest circulating stablecoin.

The stablecoin sector’s rapid growth has been driven in part by regulatory clarity, with the GENIUS Act signed into law in July 2025, creating the first federal regulatory framework for stablecoins in the U.S.