Tether Plans to Diversify Its Portfolio in Robotics and Commodities

• Tether has continued to diversify its investment portfolio as more institutions venture into the stablecoin market.
• Paolo Ardoino confirmed that Tether is seeking to dramatically expand into commodities lending.
• The stablecoin issuer is reportedly in advanced talks to lead a €1B funding round for Neura.

Tether Holdings SA is eyeing to expand its investments beyond the web3 space. Paolo Ardoino, the CEO of Tether, confirmed that the company is seeking to ramp up investments in commodities including oil, and robotics.

Tether Diversifies Its Portfolio Away from Web3 

After extending its financing of about $1.5 billion to the commodities traders, Tether is now seeking to expand its investment. The highly profitable and successful Stablecoin issuer is seeking to diversify its investment to reduce revenue reliance on digital assets. 

According to Ardoino, the El Salvador-based web3 company plans to ramp up financing for commodities such as oil, and agricultural products. The company has been using its USDT to finance agricultural operations in the Latin market, but plans are underway to expand.

“We are going to expand dramatically. The team is super bullish,” Ardoino said.

Robotics bid; company eyes AI-powered robotics

Tether is reportedly in advanced talks to lead a €1 billion funding round for Neura, a German-based robotics firm. According to persons familiar with the discussions, Tether is seeking a stake in Neura, which would increase its valuation to between €8 billion and €10 billion, if the deal goes through.

However, the company has not confirmed the deal as no official announcement has been made. 

“We are actively exploring numerous opportunities to continue investing in frontier tech, but we won’t be disclosing any specific details until they are finalized,” Tether said.

Nonetheless, Ardoino has shown significant interest in robotics, especially those backed by artificial intelligence (AI). 

Earlier this week, Tether signed an agreement with  Rumble and Northern Data to lease a significant share of their 20k GPU network to power its AI research. 

Related: Tether Bridges US-China Assets, Launching USD₮0 and CNH₮0 on China-Compliant Conflux Network

Why Now?

Tether has grown to become the largest profitable web3 company. At the time of this writing, Tether’s USDT had a market cap of about $184 billion and a 24-hour average trading volume of around $127 billion.

However, Tether is facing intense competition, especially from traditional institutional investors seeking to venture into the stablecoins market fueled by the implementation of the GENIUS Act. According to market data analysis from CoinGecko, Tether’s USDT had a market dominance of about 62%, down from 71.4% a year ago.

In a bid to remain competitive and resourceful to its shareholders, Tether has significantly diversified its investment portfolio in the recent past. Last year, the company posted a profit of $13.4 billion, whereby the majority came from Treasury holdings.

Related: Tether Cements Law Enforcement Role, Aids US-Thai Seizure of $12M in Scam