Tether Deepens Ties With Anchorage Digital Through $100M Investment

Leading stablecoin issuer Tether has invested $100 million into Anchorage Digital, a United States-regulated crypto bank.

Recall that Anchorage Digital began issuing Tether’s U.S.-regulated stablecoin, USA₮, last month. This implies that the latest investment in the crypto bank is Tether’s way of deepening the ties.

Tether Injects $100M Into Anchorage

The renowned stablecoin issuer completed the sale through its investment arm, Tether Investments, using excess funds and profits from its reserve.

Tether explained that the latest investment is its way of showing its focus “on how digital asset technology can operate within established legal and regulatory environments.” Since Anchorage Digital has a federal license to offer staking, custody, governance, and stablecoin issuance to American investors, Tether sees it as a good fit to work with.

Tether’s CEO, Paolo Ardoino, reiterated this when he said:

“Our investment in Anchorage Digital reflects a shared belief in the importance of secure, transparent, and resilient financial systems. Anchorage Digital has set a strong benchmark for institutional digital asset infrastructure, and we are pleased to support its continued growth.”

Anchorage Digital explained in a separate press release that the latest funding brings its valuation to $4.2 billion.

The bank also introduced an employee tender offer for the first time. This means that employees who have worked with the crypto bank for a long time can sell a portion of their equity at the company’s current valuation. This approach allows the firm to rely on its team members’ liquidity rather than seek fresh capital.

Business Growth Amid Market Decline

Interestingly, Tether’s and Anchorage’s business expansions come when the broader crypto market is experiencing a significant market decline.

Over the past week alone, the global crypto market capitalization has dropped from $2.99 trillion to $2.3 trillion. This downtrend is evident in the falling prices of leading cryptocurrencies like bitcoin. In the past 24 hours, the apex cryptocurrency has shed over 9% of its valuation, bringing its current price to $67,800.

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