Tether CEO Paolo Ardoino revealed the company has invested in over 120 ventures using $13.7 billion in 2024 profits, sourced from yields on its $130 billion US Treasury holdings. The investments span digital infrastructure (Bitdeer, Northern Data), decentralized communications (Holepunch), fintech (Synonym), and AI (Quantoz), signaling a strategic pivot beyond stablecoins. Ardoino emphasized these funds are separate from USDt reserves and part of Tether's long-term vision to strengthen its ecosystem.
Despite this expansion, Tether faces regulatory hurdles in Europe under MiCA regulations. The framework requires full reserve backing, 1 million daily transaction caps for non-EU stablecoins, and 30-60% of reserves held in EU banks. Ardoino stated Tether won't enter the EU market until MiCA becomes 'safer for consumers and issuers,' citing conflicts with the company's reliance on attestations rather than full audits. Critics, including Consumers Research, highlight Tether's eight-year failure to complete an independent audit as a compliance barrier.
The announcement drew community backlash over USDT's $162 billion circulation, with critics comparing Tether's token issuance to fiat money printing. Ardoino defended USDT's reserves, noting backing by dollar deposits and liquid assets.