Tether invests $2M in Arcanum Capital's blockchain fund

Tether (CRYPTO:USDT), the issuer of the USDT stablecoin, has made its first venture capital investment, contributing $2 million to the Arcanum Emerging Technologies Fund II.

This fund, managed by Arcanum Capital, focuses on blockchain technologies that enhance financial services such as remittances, privacy, cross-border payments, and banking for the unbanked.

James McDowall, managing partner at Arcanum Capital, explained that the fund targets projects aimed at improving financial systems through decentralised technologies.

"We are passionate about backing technologies that will prevent censorship and things being shut down," he emphasised the importance of backing projects that prevent censorship.

Tether’s CEO, Paolo Ardoino, shared his perspective on the investment, noting the company’s ongoing focus on supporting censorship-resistant technologies.

"A key concern today is the evolving relationship between financial systems and individual freedoms, particularly in the context of increasing restrictions on open communication," according to Ardoino.

He highlighted that geopolitical conflicts have exposed vulnerabilities in centralised infrastructure.

This investment in Arcanum Capital aligns with Tether’s broader strategy of diversification.

Ardoino further revealed that diversification has become a central focus for Tether, and the company plans to continue with this strategy into 2025.

Tether’s moves in this area follow other notable initiatives, including a proposed boron-backed token to the Turkish government in October, a $45 million oil transaction involving its USDT stablecoin, and a $775 million investment in the video platform Rumble, which prioritises free speech.

At the time of reporting, the Tether (USDT) price was $0.9978.