Tether (USDT) Now Wants to Accelerate Its Expansion into Sectors Beyond Crypto, a Report Reveals

With billions in excess reserves, Tether (USDT), the $140 billion stablecoin issuer, is gearing up to expand its investments beyond the crypto space

Stablecoin giant Tether (USDT) is set to expand its footprint beyond the crypto industry as the firm’s reserves swell, Bloomberg has learned from sources close to the firm.

Having built up its financial muscle, Tether now boasts $7 billion in excess reserves, which it is using to ramp up investments further.

One person familiar with the firm’s operations, speaking anonymously, said that while Tether’s investment strategy may appear “haphazard,” the goal is to stay ahead of any potential risks to its USDT token.

As markets in Europe adjust to the Markets in Crypto Assets (MiCA) regulatory framework, Tether is facing some challenges.

Major crypto exchanges like Coinbase, Kraken, and Crypto.com have announced plans to remove Tether’s USDT from their offerings in order to comply with the local rules.

On-chain data showed that Tether’s stablecoin lost more than 1% of its market cap when the MiCA regulations came into full effect in late December 2024.

With competition from up-and-coming stablecoins and the possibility of a drop in U.S. interest rates, sources close to Tether compared the firm’s approach to how petro-states like Saudi Arabia use oil wealth to diversify.

“It makes sense for Tether to keep branching out,” the sources added.

Tether has already made some investments outside the crypto space. For example, the stablecoin firm took a $775 million stake in the social media platform Rumble.

The firm is also backing European startups, with an investment in StablR, which launched two MiCA-compliant stablecoins, EURR and USDR.