Tether, a leading stablecoin provider, announced plans to expand its operations on April 18, 2024, by launching four new business divisions: Data, Finance, Power, and Education. This move reflects Tether’s ambition to extend its reach beyond its primary stablecoin business.
Tether’s new framework aims to place the company at the forefront of technological progress. The Tether Data division will focus on investing in emerging fields like artificial intelligence (AI) and peer-to-peer (P2P) platforms. Partnerships with firms such as Holepunch and investments in Northern Data Group showcase this commitment to innovation.
The Tether Finance division will oversee Tether’s existing stablecoin products and financial services, striving to leverage blockchain technology to enhance global financial inclusion. The division’s upcoming digital asset tokenization platform may also contribute to broader adoption of digital assets.
Tether Power marks the company’s entry into Bitcoin mining with a focus on environmentally sustainable practices, aligning with Tether’s priority of supporting the Bitcoin network responsibly.
Lastly, Tether is investing heavily in educational initiatives through its Tether Edu division, which aims to promote global access to digital skills, particularly in blockchain and P2P technologies. Key projects include public-private partnerships and investments like Lugano’s Plan B and the Academy of Digital Industries.
Paolo Ardoino, Tether’s CEO, emphasised the company’s commitment to innovation in a statement: “With this evolution beyond our traditional stablecoin offerings, we are ready to build and support the invention and implementation of cutting-edge technology that removes the limitations of what’s possible in this world.”
This announcement comes at a time when the regulatory landscape for stablecoins is becoming increasingly complex. Senators Cynthia Lummis and Kirsten Gillibrand have proposed new legislation aimed at regulating stablecoins. The bill, which will be discussed in Congress next month, aims to enhance consumer protection and maintain the integrity of the US dollar in digital finance.
Senator Gillibrand stated that the bill seeks to protect consumers by requiring stablecoins to be backed one-to-one, banning algorithmic stablecoins, and enforcing compliance with US anti-money laundering and sanctions regulations for stablecoin issuers.
Although Tether’s stablecoin is not algorithmic, concerns remain about the potential use of USDT for illegal activities such as terrorism financing. As the largest stablecoin, USDT often attracts regulatory scrutiny.
