Tether, the issuer of the stablecoin USDT, has made a significant move into the fields of robotics and physical artificial intelligence by participating in a €70 million (approximately $81.6 million) funding round for Generative Bionics, a European humanoid robotics firm. This startup focuses on developing industrial robots that leverage research from the Italian Institute of Technology.
The funding round was led by CDP Venture Capital, an entity supported by the Italian government through its Artificial Intelligence Fund. This development was announced following a statement released by Generative Bionics.
Other participants in this funding round included AMD Ventures, the investment arm of the chipmaker Advanced Micro Devices, alongside other industry investors.
Tether's Strategic Investments in AI
Tether's investment in Generative Bionics represents another key step in the company's series of strategic deals. While primarily known for issuing the USDT stablecoin, Tether acknowledges the growing popularity of stablecoins, which are cryptocurrencies pegged to traditional currencies like the dollar, as a preferred alternative payment method.
These stablecoins typically maintain their value through reserves, which often consist of cash and short-term U.S. government bonds.
Following this investment, Tether has projected that the reserves backing USDT will contribute to achieving a profit target of approximately $15 billion this year, driven by high interest rates in the sector. Based in El Salvador, Tether has been leveraging these profits to broaden its presence across various sectors, including commodities, artificial intelligence, and sports.
The company has also expressed increasing interest in the fields of AI and data. According to Tether's Chief Executive Officer (CEO), Paolo Ardoino, the fintech company aims to foster an internet where individuals have greater control over their personal data.
In addition to its investment in Generative Bionics, reports indicate that Tether also supports Blackrock Neurotech, a company at the forefront of developing brain-computer interface (BCI) technology for medical devices.
Regarding Tether's $81.6 million investment in Generative Bionics, sources close to the matter have suggested that this agreement will facilitate the hiring of engineers from the Italian Institute of Technology by the Italian humanoid robotics firm as it prepares for industrial applications.
The funding will also be used to accelerate product development and enhance the training of its physical AI systems, which are integral to integrating robotics with AI. Consequently, Generative Bionics's robots will effectively employ tactile sensing, learning architectures, and human-robot interaction technologies in sectors such as manufacturing and logistics.
Amidst increasing competition and demand within the AI ecosystem, Generative Bionics has announced plans to showcase its first fully operational humanoid robot at CES in Las Vegas this January.
Tether Explores Commodities Lending Practices
Last month, Tether announced its intention to significantly increase its lending activities to commodities traders. Ardoino stated that this plan was adopted after these traders offered approximately $1.5 billion in credit to the commodities market.
In a recent interview, Tether's CEO explained that the stablecoin issuer aims to bolster financing for trading in a range of commodities, including oil, cotton, wheat, and other agricultural products, through this strategic initiative.
Reports also indicate that the fintech company has been issuing loans to its clients in both U.S. dollars and its USDT stablecoin, which is pegged to the dollar.
Despite these efforts, Tether remains a relatively smaller player in the commodities lending space compared to leading banks. However, sources suggest that the firm possesses strong earnings potential, supported by its reserves of nearly $200 billion.
This financial standing provides Tether with the opportunity to compete effectively. Ardoino commented, "By using USDT for loans, Tether can also tap into a digital currency that is gaining popularity in commodity-exporting areas such as Latin America."