Stablecoin issuer Tether to expand dealmaking beyond crypto: report

With billions of dollars in excess reserves, Tether is accelerating its expansion into sectors beyond crypto, a report reveals.

Tether (USDT), the $140 billion stablecoin issuer, is gearing up to expand its investments beyond the crypto space as the firm’s reserves grow, Bloomberg has learned, citing sources close to the firm.

The company’s financial strength has been increasing, and with $7 billion in excess reserves, Tether is ramping up its investments further. A person familiar with the firm’s operations, speaking anonymously, explained that while Tether’s investment strategy might seem “haphazard,” the firm is focused on staying ahead of potential risks to its USDT token.

In Europe, Tether is facing regulatory hurdles as markets adjust to the MiCA framework. Major crypto exchanges, including Coinbase, Kraken, and Crypto.com have signaled their plans to remove Tether’s USDT from their offerings to comply with the local rules.

Tether follows petro-state model

As crypto.news reported earlier, on-chain data shows that Tether’s stablecoin lost more than 1% of its market cap when MiCA regulations came into full effect in late December 2024.

With growing competition from emerging stablecoins and the potential for U.S. interest rates to decline, sources close to Tether have compared the company’s strategy to how petro-states like Saudi Arabia use oil wealth to diversify. “It makes sense for Tether to keep branching out,” they said.

Tether has already made significant investments outside the crypto space. For instance, the stablecoin issuer acquired a $775 million stake in the social media platform Rumble. Additionally, Tether is backing European startups, including an investment in StablR, which launched two MiCA-compliant stablecoins, EURR and USDR.