Tether, the world’s largest stablecoin issuer, is aggressively diversifying its business beyond its flagship USDT token. In just two days this April, Tether announced two major moves: launching a Bitcoin-focused public company with major partners and boosting its ownership stake in the Italian football club Juventus to over 10%. These efforts mark a strategic shift aimed at securing Tether’s future amid mounting global regulatory pressures.
USDT’s Critical Role and Growing Challenges
Since launching USDT in 2014, Tether has cemented its role as a cornerstone of the cryptocurrency ecosystem. At its peak, USDT accounted for 50% to 80% of all Bitcoin trades and served as a crucial bridge for users accessing crypto markets without traditional fiat pairs.
Tether’s influence expanded through cross-border payments, particularly in regions with limited banking access. Supported by billions of dollars in U.S. Treasury holdings — Tether was the 7th largest foreign buyer of U.S. Treasuries in 2024 — USDT provided both liquidity and stability in volatile markets.
However, regulatory challenges are intensifying. Tether’s refusal to fully comply with Europe’s Markets in Crypto Assets (MiCA) regulation led to USDT’s removal from major exchanges like Coinbase, Kraken, Binance, and Crypto.com for EU customers. In the United States, upcoming legislation, potentially including competition from a Trump-affiliated stablecoin project, could further threaten USDT’s dominance.
To navigate these challenges, Tether is exploring the launch of a new regulatory-compliant stablecoin, signaling its intent to adapt.
Strategic Relocation and International Expansion
Earlier this year, Tether moved its headquarters from the British Virgin Islands to El Salvador, the first nation to adopt Bitcoin as legal tender. Although El Salvador later reversed Bitcoin’s legal tender status, Tether’s move signals its broader international ambitions.
Beyond North America and Europe, Tether’s USDT remains a vital tool in Africa, Russia, and Iran, where it is used for both savings and international trade under sanctions. This global footprint highlights USDT’s continued relevance, even as regulatory headwinds gather.
Beyond Stablecoins: Tether’s New Ventures
Recognizing the risks of overreliance on USDT, Tether has expanded into multiple sectors:
- Bitcoin Mining: Tether owns a 21% stake in Bitdeer, operates mining projects in Uruguay, and has invested in Volcano Energy, a $1 billion Bitcoin mining initiative in El Salvador. It also holds a 20% stake in Northern Data AG, a major European tech firm, with plans to rent out Nvidia H100 GPUs to AI developers.
- Artificial Intelligence: Tether became the majority stakeholder in Blackrock Neurotech, a brain-computer interface leader, investing $200 million to support cutting-edge neuro-prosthetic technologies.
- Media and Communications: The company invested $775 million in Rumble, a video platform known for its far-right user base, and backs Fizen, a payment and self-custody wallet startup.
- Infrastructure and Tokenization: Tether also launched Holepunch, a decentralized software platform, and hinted at future tokenization initiatives and educational power kiosks across Africa.
These investments show Tether’s ambition to build a multi-pronged business empire resilient to regulatory shifts.
Legal Scrutiny and Risk Management
Tether remains under close legal scrutiny. Last year, U.S. investigators alleged Tether’s involvement in money laundering and sanctions violations accusations CEO Paolo Ardoino vigorously denied. Ardoino emphasized the company’s cooperation with law enforcement agencies and dismissed the claims as “unequivocally false.”
Nonetheless, losing access to the European and American markets would represent a significant blow. By branching out aggressively, Tether aims to insulate itself from such risks.
Final Thoughts: “Build for the Apocalypse”
Tether’s diversification strategy reflects its broader philosophy, articulated by Ardoino:
“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.’”
Whether or not regulatory challenges escalate, Tether’s expansive moves into Bitcoin mining, AI technology, and global finance show a company determined not to rely solely on one product. The coming years will reveal whether this bold strategy can secure Tether’s long-term future with or without USDT at the center of its empire.
