Tether has made its first foray into the venture capital industry by contributing $2 million to Arcanum Capital fund, which focuses on creating blockchain-based Web3 products.Â
A recent news release claims that Arcanum Capital’s Arcanum Emerging Technologies Fund II has seen $2 million invested in the venture capital field by Tether, a significant stablecoin issuer. As a component of DigitalArray, the fund concentrates on creating decentralized technologies.
Among other things, Arcanum Capital intends to use Tether’s investment to establish Web3-centered projects that aim to integrate blockchain and artificial intelligence, expand on the Bitcoin ecosystem, and explore advances in cryptocurrency payments.
On the other hand, a portion of the Arcanum cash will be used to speed up projects utilizing Holepunch technology and enhance the use of USDT for payments.
With support from Bitfinex, Tether, and Hypercore, Holepunch is a platform for creating peer-to-peer applications.
As this is Tether’s first entry into the venture capital field, it signifies a dramatic change in how the blockchain industry contributes to expanding venture capital. Paolo Ardoino, the CEO of Tether, was upbeat about the partnership with Arcanum Capital.
He thinks the collaboration between the two businesses will provide cutting-edge instruments that enable individuals during uncertain times. Ardoino in a statement:
In a world increasingly shaped by geopolitical tensions and macroeconomic uncertainty, the need for resilient technology to safeguard our freedoms has never been more crucial”
According to James McDowall, managing partner of Arcanum Capital, Tether’s investment aligns with Arcanum’s mission to develop game-changing solutions that advance blockchain innovation. McDowall said:
We are honored to have Tether as a founding investor in our second fund. Their contribution not only signals a strong vote of confidence in us as asset managers, but also validates our unique mission and approach”
The CEO of Tether revealed the company’s investment areas earlier this month. Commodity trading, TradFi, and Bitcoin mining are a few of these fields.
Time will tell if the stablecoin plans to make similar investments in the future, as Arcanum Capital is the first time Tether has invested in a venture capital firm.
