Tether has made its first dive into the world of venture capital by injecting $2 million into Arcanum Capital’s fund, which focuses on developing blockchain-based Web3 projects.
According to a recent press release, major stablecoin issuer Tether (USDT) has invested $2 million into the venture capital space through Arcanum Capital’s Arcanum Emerging Technologies Fund II. The fund is a part of DigitalArray, focusing its efforts on developing decentralized technologies.
Arcanum Capital plans to use Tether’s investment to develop Web3-centered projects that seeks to combine AI and blockchain technology, build on the Bitcoin (BTC) ecosystem and create innovations in crypto payments among others.
On the other hand, a portion of the Arcanum fund will be allocated to improving the utilization of USDT for payments, as well as accelerating work on projects that use Holepunch technology. Holepunch is a platform for building peer-to-peer apps, backed by Bitfinex, Tether, and Hypercore.
This marks Tether’s first foray into the world of venture capital, indicating a significant shift in contributing towards the growth of venture capital through the blockchain space.
CEO of Tether, Paolo Ardoino, expressed optimism towards the collaboration with Arcanum Capital. He believes the partnership between the two companies will result in innovative tools that could empower people in times of uncertainty.
“In a world increasingly shaped by geopolitical tensions and macroeconomic uncertainty, the need for resilient technology to safeguard our freedoms has never been more crucial,” said Ardoino in a statement.
Managing Partner of Arcanum Capital, James McDowall, said Tether’s investment is in line with Arcanum’s goal to create transformative technologies that further innovate the blockchain space.
“We are honored to have Tether as a founding investor in our second fund. Their contribution not only signals a strong vote of confidence in us as asset managers, but also validates our unique mission and approach,” said McDowall.
Earlier this month, Tether’s CEO unveiled areas the firm has invested in. Some of these areas in include Bitcoin mining, TradFi, and commodity trade. Since Arcanum Capital is the first time Tether has invested into a venture capital fund, time will tell if the stablecoin intends to make similar investments in the future.
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