Tether, the issuer of the USDT stablecoin, plans to develop a peer-to-peer financial market terminal leveraging hole-punch technology.
CEO Paolo Ardoino announced on X that Tether will invest significant resources in this effort.
Tether Plan P2P Financial Market Terminal
Ardoino said the company aims to replicate USDT's success within financial markets by eliminating monopolistic intermediaries.
“Every exchange in the world will maximize revenue from its own data while directly controlling its use. As a result of this change, financial markets will be more resilient and the world will be a better place. “It's very likely,” Ardoino added.
Although specific product details are unclear, Ardoino suggested that the P2P platform will decentralize financial market data infrastructure. He further said that the terminal will be built using hole-punch technology.
Holepunch is a platform designed to create apps without the need for centralized data storage, allowing for easy deployment. Tether is a significant investor in this technology.
This announcement signals Tether’s strategy to diversify beyond its flagship USDT stablecoin. The company recently restructured its business into four different sectors: finance, data, education, and power.
Tether Finance oversees billions of dollars of USDT and other digital assets. Meanwhile, the company's Power division focuses on sustainable Bitcoin mining activities.
Read more: How to buy and store different types of tethers
Meanwhile, Tether Data will invest in P2P technology and artificial intelligence alongside existing investments in Northern Data Group and Holepunch.
Notably, Tether, through its venture capital arm Tether Evo, has acquired a majority stake in brain-computer interface company BlackRock Neurotech. Ardoino said the investment demonstrates the company’s belief in nurturing emerging technologies with transformative capabilities.
Meanwhile, these diversification efforts come at a time when Tether's financial performance is at its peak. Over the past year, the company's USDT market capitalization has exceeded $110 billion and generated significant profits every quarter. Additionally, USDT accounts for approximately 70% of the stablecoin market, according to DeFillama data.
Read more: What is a stablecoin? A beginner’s guide
However, Tether faces increasing regulatory challenges. Reports have surfaced that cryptocurrency exchange Kraken may delist its stablecoin for European users. Ripple CEO Brad Garlinghouse also recently claimed that the US government could target stablecoin issuers.
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