Mike Smith
2 days ago
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The largest issuer of stablecoins demonstrates an unexpected growth driver: instead of conservatively storing profits, Tether invests them in more than 120 companies, turning USDT from a payment analog of the dollar into the core of the venture capital ecosystem. CEO Paolo Ardoino revealed only a fragment of the portfolio, but even it is impressive in scale: over the last year, the organization allocated $13.7 billion of net profit to fund startups in the field of artificial organs, quantum computing and fintech.
The public list includes BlackRock Neurotech, Crystal Intelligence, and Holepunch, a peer-to-peer platform created back in 2022 that includes Bitfinex and Hypercore. MANSA, Bitdeer, and Latin American marketplace Orionx were added to these assets in 2025. Tether emphasizes that the portfolio will “expand significantly in the coming months,” while maintaining strategic opacity: the exact shares, investment periods and mechanics of further financing of projects are not disclosed.
The financial strength of the issuer is understandable. USDT's capitalization has surpassed $162 billion, and daily turnover is consistently above $129 billion, nearly double that of Bitcoin. Against the backdrop of a monetary policy with low real yields, corporations, hedge funds and retail traders use the token as a universal clearing instrument, while the commission flow and interest income from reserves transform its issuer into a free cash flow generation machine.
Unlike classic venture capital funds, Tether is not limited by a mandate or investment lifecycle. The company reinvests profits in a “wrap-around ribbon,” combining a stake in a startup with technological access to its audience. This symbiosis creates an immediate market for portfolio projects: as early as the beta stage, they gain a multi-million dollar audience through the integration of USDT payments, drastically reducing the time to revenue.
At the same time, Tether remains a closed structure: financial statements are published in the format of reserve attestations, but do not break down revenues by line of business. This information vacuum stimulates speculation - but the real diversification of assets reduces the systemic risks of the stablecoin itself. While competitors spend resources on legal battles, USDT converts market confidence into control over early technological trends.
Investment bankers note that such an aggressive strategy is sustainable as long as regulators do not impose strict limits on the use of corporate earnings in non-core assets. But even if the rules are tightened, Tether will retain optionality: most investments are structured through convertible notes and options, allowing for flexible exits in the event of changes in the regulatory environment.
The penetration of USDT into the technology sector is changing the perception of stablecoins from utilitarian tokens to institutional investors capable of influencing the balance of power in venture capital. This is why it is not regulators who are watching Tether's actions most closely, but competing funds, which are forced to adapt multiplier valuations to the new, more liquid reality.
