Benzinga - In a strategic move to broaden its reach beyond stablecoins, Tether (CRYPTO: USDT), the world’s largest stablecoin creator, has announced a reorganization into four divisions.
What Happened: Tether has formed four divisions to reflect its expanding focus and interest in sectors beyond its flagship stablecoin.
- Data division: focuses on strategic technology investments, including artificial intelligence (AI).
- Finance division: manages the USDT stablecoin, which has a market cap exceeding $100 billion and plays a pivotal role in crypto markets.
- Power division: oversees investments in Bitcoin mining.
- Education division: responsible for educational activities.
As reported by CoinDesk Tether stated, “By focusing on sustainable solutions adaptive to the needs of individuals, communities, cities, and countries, responsible Bitcoin mining, Artificial Intelligence infrastructure, and decentralized communication platforms, Tether is actively contributing to a future-proof financial and tech ecosystem.”
Also Read: Crypto Nightmare: Russian Operative Uses Tether To Fund War Machine
Why It Matters: The move comes amid Tether facing criticism for the perceived lack of transparency of the reserves backing USDT.
In the past year, the firm made investments in BTC mining operations in Uruguay and a payment processor in Georgia. It also ventured into AI through a partnership with data cloud provider Northern Data Group.
Tether’s expansion comes amidst news of Tether’s USDT reportedly being used by a Russian operative, Andrey Zverev, to fund war activities. The operative facilitated transactions for Russia’s leading small arms manufacturer, Kalashnikov Concern, using USDT.
In its 2023 annual report, Tether disclosed $6.2 billion in profits highlighting the significant usage of USDT in countries like Brazil, Venezuela, Vietnam, and Nigeria.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
Read Next: Tether CEO Says USDT Could Reach $1-Trillion Market Cap
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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