Paolo Ardoino, the CEO of Tether, is funneling its profits into artificial intelligence and other new technologies. The company recently announced that its earnings have risen considerably due to the interest rate increase. Tether’s new strategy is to diversify its investments, directly competing with the existing tech goliaths.
Tether Profits Soar to $5.2 Billion in 2024
Tether’s revenues have also been climbing in the last two years due to increased interest rates on the assets held in its reserve. The company has been earning up to 5.5% on its reserves, much better than the previous years’ 0.2%. This financial growth has empowered Tether to look for other ways to expand its investment.
Up to the first half of 2024, Tether recorded a profit of $5.2 billion. This profit is linked with its reserve assets, among which are short-term securities of the US government. Tether is now using these profits to expand its business beyond the world of cryptocurrencies.
Tether Launches Evo Division for Tech Innovation
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Tether has created Tether Evo, a new venture division to develop new technologies. The company is plowing the excess cash back into business areas like AI in an effort to rival tech powerhouses, showing that Tether wants to increase its presence in the global technology market.
CEO Paolo Ardoino pointed out that new business endeavors must also be decentralized. He said that Tether aims to act on the principles of financial freedom and technological access in other industries. In this regard, Tether wants to be a significant participant not tied to big technological organizations.
Tether has been investing in AI as part of its diversification plans and moving away from strictly crypto assets. Ardoino pointed to AI’s political nature and the importance of having new market participants. As such, Tether has adopted decentralization as its strategy because it expects it to become paramount.
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