Tether is a pioneer in the field of stablecoin technology, driven by an aim to revolutionize the global financial landscape. With a mission to provide accessible, secure, and efficient financial, communication, and energy infrastructure. Tether enables greater financial inclusion, and communication resilience, fosters economic growth, and empowers individuals and businesses alike.
As the creator of the largest, most transparent, and liquid stablecoin in the industry, Tether is dedicated to building sustainable and resilient infrastructure for the benefit of undeserved communities. By leveraging cutting-edge blockchain and peer-to-peer technology, it is committed to bridging the gap between traditional financial systems and the potential of decentralized finance.
While Tether’s mission has always been rooted in these values, the way that is being expressed through Tether’s products, goals and initiatives has evolved dramatically over the last several years. Tether recently announced its investment into developing new energy resources in Uruguay to power renewable Bitcoin mining.
In July of 2022, Tether announced the co-founding of Holepunch, a fully P2P platform for building encrypted, unstoppable apps, the first of which being Keet, a P2P communications protocol. Tether has always worked closely with the governments of El Salvador and Lugano to help develop each country as the financial centers of their regions in the digital age.
All of these initiatives come together to paint a company whose mission is evolving and growing. On the back of record profits, Tether is well positioned to expand in its mission to improve financial, economic, communication, and energy infrastructure for the world and especially within emerging markets.
Let's explore how this can happen:
Bitcoin Mining in Uruguay
On the surface, many people may not understand why Bitcoin mining would benefit Uruguay, it requires understanding the impacts Bitcoin mining has on the grid and local communities.
Tether is investing, not just in Bitcoin mining, but in developing new energy infrastructure which does not currently exist.This expands the availability of energy in a region which has historically had constrained energy availability. Why do you need Bitcoin mining to do this, couldn’t Tether just build energy infrastructure without using it to mine Bitcoin?
Bitcoin mining is necessary because in areas with low energy availability, there is also a lack of demand for energy (because it hasn't been available). If all Tether did was build energy infrastructure, there would be no one to use or buy the energy. Bitcoin mining provides an instant, profitable, consumer of energy which can be deployed anywhere in the world. It is Bitcoin mining which makes these projects work, and ensures a reliable supply of energy that other entrepreneurs can count on as they build other ways to use that energy in the region. It's vital to understand that Tether Energy operations will always give priority to the people's usage of the electricity, focusing on using the excess.
Bitcoin mining goes first into a new region, and economic development follows it. However, the benefits to Uruguay don’t stop there.
Both the energy infrastructure and the mining facilities will provide great jobs to the region and benefit the community there. These facilities are also low footprint, and have a highly limited impact on the environment which is not the case with so many other development plans.
Bitcoin mining doesn't just help build the electric grid, it can help stabilize the grid as well. As the amount of renewable energy expands, energy availability becomes more variable which is a tough challenge to navigate. How do developed countries solve this challenge?
Typically, with excess natural gas plants. However, if a country doesn’t have a surplus of natural gas or natural gas turbines, it cannot do this. Bitcoin solves this challenge in many ways, because miners can turn on or off quickly to mitigate variability in renewable energy. As Uruguay is a leader in renewable energy, with 94% of power generation coming from solar and wind, Bitcoin mining will be a huge benefit for the grid, and help demonstrate a better development model.
In addition to Tether's recent initiative in Uruguay, Tether has participated in the initial $250m funding round for Volcano Energy. Volcano Energy is a fully renewable mining installation in El Salvador that will ultimately raise $1bn in order to build the largest mining facility in the world.
As always, Tether's investments in both Uruguay and Volcano Energy come from its excess reserves, not from reserves that back USD₮. At the end of Q1, these reserves exceeded $2.5bn, and have continued to grow since.
El Salvador has demonstrated its commitment to Bitcoin throughout turbulent market conditions, and Tether is proud to support and build alongside the world's first Bitcoin nation.
Volcano Energy will support El Salvador's economic growth through an influx of jobs, and the expansion of its energy infrastructure, and,alongside Uruguay, marks the launch of Tether's energy initiatives.
Holepunch and Keet
Tether co-founded Holepunch and Keet in 2022 as a way to support global, and free channels of communication. Tether sees this as a critical pillar in Tether’s mission of providing the world with accessible, secure, and efficient communication infrastructure. Having the ability to communicate is the first step for commerce and economic development.
If you can’t communicate, you can’t use Bitcoin, USD₮, or any other digital money, and if you have a P2P currency but cannot use it over P2P communication channels, can you really realize all of it’s benefits?
Tether’s answer to this question is no.
Holepunch allows apps to be built without using any servers, at all. This eliminates the jurisdictional risks that countless communications apps continually run into. Holepunch cannot leak or lose or give user data, because Holepunch doesn't have it.
When you pair unstoppable communication with truly digital currency, you have the basis for a giant leap forward in economic development for countries which have historically been undeserved.
All-Time Highs and Beyond
Tether USD₮ recently exceeded its all-time high marketcap, and is the only major stablecoin to do so, by a large margin. Tether’s competitors are all down substantially from their ATH marketcaps.
This was only possible due to the continued support our users give to Tether, support which was only able to be earned through a risk management approach which has insulated Tether from the challenges many competitors faced. This has resulted in Tether earning net profits in Q1 which exceeded many S&P 500 companies, and financial firms like Blackrock.
These profits help bolster Tether’s reserves and ultimately benefit USD₮ users.
As Tether uses its proven track record to expand beyond stablecoins, it will continue to build, invest in, and expand energy infrastructure and communications. Tether’s views these domains as essential to its overall mission and supportive to the usage of USD₮ and Bitcoin.
We are excited for this next chapter as the world continues to wake up to the power, and benefit, of open-source software, P2P communications, and unstoppable money.
Driving the Future of Money
Tether supports and empowers growing ventures and innovation throughout the blockchain as a digital token built on multiple blockchains.