The Article Tells The Story of:
- Tether’s Investment: Tether invests in Arcanum Capital’s fund to support decentralized technologies, focusing on blockchain, AI, and privacy-focused innovations.
- Objective: The investment aims to enhance digital application resilience and security by utilizing decentralized technologies and Tether’s stablecoin infrastructure.
- Industry Impact: Stablecoins, including Tether’s USDT, are bridging traditional finance and cryptocurrencies, offering efficiency and stability.
- Regulatory Challenge: Due to the EU’s Markets in Crypto-Assets Act (MiCA), Tether is halting support for its euro-pegged stablecoin, EURT, in Europe.
Tether’s Strategic Investment in Web3
Tether, known for issuing USDT, has now ventured into the realm of venture capital. The company has invested in the Arcanum Emerging Technologies Fund II. This fund focuses on supporting decentralized technologies, including the bitcoin ecosystem, blockchain and artificial intelligence (AI) interfaces, and privacy-focused innovations. The announcement came through a press release dated December 27.
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Empowering Decentralized Technologies
Paolo Ardoino, Tether’s CEO, emphasized the importance of sturdy technology in today’s world filled with geopolitical tensions and economic uncertainties. He stressed the role of technology in safeguarding freedoms. Ardoino highlighted the collaboration with Arcanum Capital as a key step in empowering individuals with the necessary tools and knowledge to ensure their sovereignty.
The fund will allocate resources to companies utilizing Tether’s stablecoin and technology from Holepunch, which facilitates serverless app creation. The aim is to enhance the resilience, security, and equity of digital applications, emphasizing decentralized technology as a core component.
A Commitment to Innovation: James McDowall, managing partner of Arcanum Capital, expressed appreciation for Tether’s investment. He described it as a testament to the firm’s confidence in Arcanum Capital’s mission and approach. McDowall highlighted their shared passion for transformative technologies and voiced pride in having Tether as a partner in advancing these goals.
Stablecoins: Bridging the Financial Gap
Stablecoins, notably Tether’s USDT, are reshaping both consumer and business transactions. PYMNTS reports that these digital tools offer transparency and security through blockchain technology. They bridge traditional financial systems and cryptocurrencies, combining the efficiency of blockchain with fiat currency stability.
Despite USDT’s dominance, which represents about three-quarters of the stablecoin market, Tether faces challenges due to the European Union’s Markets in Crypto-Assets Act (MiCA). Consequently, Tether has withdrawn issuance and operational support for its euro-pegged stablecoin, EURT, in the EU region.
Tether’s investment in Arcanum Capital signifies a strategic move to further strengthen its involvement in decentralized technologies. This partnership aligns with Tether’s vision to drive technological innovation, reflecting a commitment to advancing the capabilities of Web3 technologies.
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