Tether plans to invest over $1 billion in various deals in the coming year, according to CEO Paolo Ardoino in a Bloomberg interview. Through its venture arm, Tether Investments, the company will focus on alternative financial infrastructure, artificial intelligence (AI), and biotech.

Ardoino noted that Tether Investments is actively assessing numerous startup pitches each month. This investment strategy aims to diversify Tether's portfolio beyond its stablecoin, Tether USD (USDT), which has a market cap of $112.4 billion.

Over the past two years, Tether has invested about $2 billion, aiming to strengthen its financial presence in emerging markets and reduce reliance on major tech corporations. Profits, driven by high interest rates, have enabled substantial investments in US Treasury bills and other securities. Ardoino highlighted the importance of investing in technology that reduces reliance on traditional financial intermediaries.

“We can offer AI computing to all the companies we have invested in,” Ardoino stated. “It’s about investing in technology that helps disintermediate traditional finance and reduce dependence on big tech companies like Google, Amazon, and Microsoft.”

Despite past regulatory issues, Tether’s USDT has maintained its dollar peg. The company reported a $4.5 billion profit in the first quarter, reinforcing its role as a significant dealmaker. Future plans include a digital platform for bonds and equity issuance and support for central bank digital currencies, extending Tether's reach beyond stablecoins.