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Tether added crypto payments app Fizen to its growing investment portfolio on Tuesday, which includes football clubs, farms, and even a company developing computer-brain interfaces.
Fizen, a Hong Kong-based startup that previously raised $1.2 million from investors, styles itself as a payments “super app” that focuses on practical applications for crypto, such as topping up mobile phone credit, or buying movie tickets.
“Tether’s investment in Fizen underscores our commitment to expanding global access to efficient and reliable digital financial solutions that promote the informed responsible use of digital assets in everyday life,” Tether CEO Paolo Ardoino said in a press release.
Third deal
The Fizen investment marks Tether’s third major deal since this year. It’s also a shift from the stablecoin giant’s recent offbeat investments, many of which had little to do with crypto.
Last month, Tether invested $11 million in media company Be Water in exchange for a 30% stake in the firm.
In February, Tether acquired a minority stake in Juventus, the Italian Serie A football club. The same month, Tether also bid $385 million for the complete ownership of a South American farming firm which it partly owns.
The slew of investments comes after Tether reported an eye-watering $13 billion gain from its reserves in 2024.
Ardoino told DL News in an interview in 2024 that Tether is constantly reviewing investment opportunities but is very choosy about what it pursues.
Strategic investors
As the issuer of USDT ($1.00), Tether is the top stablecoin issuer worldwide. USDT, which has $145 billion in circulation, accounts for 62% of the entire stablecoin market.
It joins other strategic investors in Fizen, including blockchain development company Sotatek, Vietnamese software development company VNext, and Viction, formerly known as TomoChain.
Previous fundraising efforts took the form of selling Fizen tokens to investors. It’s not clear whether Tether’s strategic investment was for ownership in the company or crypto tokens.
Tether did not immediately respond to a request for comment.
Hot sector
Crypto payments is fast becoming a hot sector.
In January, US crypto exchange Kraken launched Kraken Pay, a service that allows users to send payments using either crypto or fiat currencies.
Last year, UK-based fintech Revolut expanded its offerings with a crypto payments card.
Fintech firms will increasingly integrate with crypto rails to offer faster, cheaper, and more efficient financial services — like payments — to their customers, Mike Giampapa, a general partner at Galaxy Ventures, previously told DL News.
Fizen’s plan is to offer crypto payments without users even realising they are using blockchain technology, Leo Vu, founder and CEO of Fizen, said in the release.
“The technology infrastructure is already in place,” he said. “We lack consumer-friendly applications.”
Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at [email protected].
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