Why use Tether?

21 September 2023: Tether, the company behind the world's leading stablecoin, is pleased to announce its strategic investment into Northern Data Group through Damoon, a Tether group company. With an $83 billion market capitalization, Tether is expanding its reach beyond fintech, following recent investments in energy production, bitcoin mining, and communications technology. 

As the world anticipates the boundless opportunities driven by technological advancements, including blockchain, Generative AI, and scientific research, Northern Data Group emerges as a true pioneer. This investment is significant for Tether as it demonstrates its determination to support emerging technology. Tether recognizes Northern Data Group as a trailblazer in this domain and believes its commitment to resilient data storage and high-performance computing aligns perfectly with Tether's forward-looking perspective.

These investments not only embrace innovation but also uphold both companies' dedication to responsible financial stewardship, safeguarding the interests of their customers. Together, they aim to develop accessible solutions that benefit communities worldwide.

Tether looks forward to its collaboration with Northern Data Group on several initiatives that aim to leverage AI, peer-to-peer communications, and super-resilient data storage solutions, to develop accessible solutions globally and locally that service many communities already engaged with other Tether products.

"We are excited about this investment into Northern Data Group as it represents a fresh venture into new technological frontiers," said Paolo Ardoino, Tether's Chief Technology Officer. "This investment underscores our commitment to responsible growth and innovation while preserving the strength and integrity of Tether tokens’s reserves."

A media report from Forbes contained inaccuracies regarding Tether’s stake size in this investment. 

It is also important to note that these investments are separate from Tether's reserves disclosed in the CRR, ensuring they do not impact Tether's reserves or customer funds. Tether's expansion into new frontiers signifies a promising era of growth and sustainability that aligns with Northern Data Group's vision for the future.

The banking industry is facing significant challenges and has proven incapable of keeping up with evolving global financial markets, something the Wall Street Journal has disregarded countless times in pursuit of tarnishing the reputation of true innovators like Tether.

Traditional financial institutions are not addressing the needs of their customers in a way that is detrimental to a thriving economy and few have taken the time to examine this further. Rather they are spending time scrutinizing Tether, who, in the interest of its customers, has accrued more than $3.3 billion in excess reserves to effectively reduce secure loan exposure as net result.

Anyone with a minimum understanding of financial markets would see how a company having $3.3 billion in excess equity and on track to make a yearly profit of $4 billion is in all effects offsetting the secured loans and retaining such profits within the company balance sheet. Tether is still committed to removing the secured loans from its reserves.

This demonstrates the need for a more nuanced understanding of how stablecoins function and dispels any misconceptions regarding Tether's security. Or one might wonder if this is merely an attempt to manipulate tabloid-style reporting to appease their “friends” entrenched in the old guard.