Tether invests $2M in Arcanum Capital Fund II

Tether, a leading stablecoin issuer, has taken its first step into the world of venture capital by investing $2 million into Arcanum Capital’s Arcanum Emerging Technologies Fund II. This fund is part of the broader DigitalArray initiative, which focuses on advancing decentralized technologies, particularly in the realm of blockchain and Web3 development. The capital injection from Tether will be used to support the development of a range of Web3-centered projects, with a particular emphasis on combining artificial intelligence (AI) with blockchain technology. The goal is to build upon the Bitcoin ecosystem, create new innovations in crypto payments, and foster broader use cases for decentralized technologies.

In addition to supporting Web3 projects, a portion of the funds will be allocated toward improving the use of Tether’s USDT in facilitating payments, as well as accelerating the adoption of Holepunch technology. Holepunch is a platform backed by Bitfinex, Tether, and Hypercore, designed to enable the creation of peer-to-peer applications that function without centralized control. This move represents Tether’s growing interest in investing beyond its traditional role in the crypto market, signaling a shift towards actively contributing to the growth of the venture capital space, particularly within blockchain and cryptocurrency.

Paolo Ardoino, CEO of Tether, expressed confidence in the collaboration with Arcanum Capital, highlighting that the partnership could lead to the development of innovative tools that will help address global challenges. He noted that in a world increasingly shaped by geopolitical tensions and macroeconomic uncertainty, the need for resilient technologies to safeguard individual freedoms and ensure economic stability has never been more important.

James McDowall, Managing Partner of Arcanum Capital, also expressed gratitude for Tether’s investment, stating that the contribution not only validates Arcanum’s approach but also signals confidence in their ability to manage assets effectively. He emphasized that this investment aligns with Arcanum’s goal of creating transformative technologies that will drive further innovation within the blockchain space.

This investment in Arcanum Capital is Tether’s first venture into a venture capital fund, marking a significant new chapter for the company. Tether has previously made investments in various sectors, including Bitcoin mining, traditional finance (TradFi), and commodity trading. With this venture capital commitment, it remains to be seen whether Tether will continue to pursue similar investments in the future, solidifying its role as a key player in the broader blockchain and technology ecosystem.