Stablecoin issuer Tether has made its first crypto venture capital fund investment into Arcanum Capital’s Arcanum Emerging Technologies Fund II, a tokenized investment vehicle specializing in decentralized Web3 projects. The investment is valued at $2 million.
Understanding the Investment
Managing partner at Arcanum Capital, James McDowall, explained that the fund invests in blockchain technologies that enhance remittances, cross-border payments, privacy, and banking services to the unbanked. This strategic investment aligns with Tether’s objectives of promoting open communication and censorship resistance.
Tether’s Objectives
Tether CEO Paolo Ardoino emphasized the importance of these goals in a statement to Cointelegraph:
"A key concern today is the evolving relationship between financial systems and individual freedoms, particularly in the context of increasing restrictions on open communication. Geopolitical conflicts have exposed the vulnerabilities of centralized infrastructure."
Diversification Strategy
Tether’s investment in the venture capital fund is a continuation of its diversification strategy, which began in 2024. This strategic move highlights Tether’s commitment to exploring new opportunities and expanding its reach within the crypto ecosystem.
Previous Diversification Moves
In October, Tether proposed a boron-backed token to the Turkish government. Boron is a mineral used in household cleaning products, glass manufacturing, and fertilizers. According to Eti Maden Isletmeleri Genel Mudurlugu, Turkey controls roughly 70% of the global boron supply.
Tether also facilitated its first energy financing deal in October, completing a $45-million oil transaction that involved transporting 670,000 barrels of crude oil from the Middle East. The transaction was financed by Tether’s USDt USDT stablecoin.
Hadron Tokenization Platform
In 2025, Tether introduced the Hadron tokenization platform, which allows businesses, asset managers