Tether Leads $8M Funding Round to Power Speed’s Lightning Payments

Highlights:

• Tether has joined an $8 million funding round as part of its strategic investment in Speed.
• The investment aims to expand USDT adoption among individuals and companies.
• Ego Death Capital was the other party in the financing round led by Tether. 

Stablecoin issuer, Tether, has invested in Speed1, Inc., a company focused on fast and global payments. Tether announced the strategic move in a press release on December 16. According to the publication, the investment was part of Speed’s $8 million funding round, led by Tether alongside Ego Death Capital.

Speed builds payment tools that allow money to move instantly across borders, using the Bitcoin Lightning Network and stablecoins like USDT. This enables users to send and receive money quickly at minimal cost. Speed handles over $1.5 billion in payments each year. It also serves roughly 1.2 million users and businesses through its two main products, which include Speed Wallet and Speed Merchant.

Speed’s main users include consumers, content creators, online platforms, and large business enterprises. They use the payment platform to make instant payments. Other services include a strong routing that supports large-scale global payments. The platform also supports native Bitcoin and USDT settlements.  

Tether Joins $8M Funding Round to Increase USDT’s Adoption

Tether said the investment aligns with its broader plans to support payment systems linked to Bitcoin (BTC) while also expanding the USDT use case in daily transactions. By partnering with Speed, the company aims to promote real-world USDT use while staying compliant with cryptocurrency regulations.

Speaking on the investment, Paolo Ardoino, Tether’s Chief Executive Officer (CEO), said Speed has demonstrated possible outcomes when Lightning is combined with a stable digital dollar like USDT. He explained that Tether supports teams that build real payment systems aimed at making fund transfers easier and more accessible. “Speed’s execution and adoption signal that Bitcoin-rooted networks are ready for mainstream commerce,” the Tether boss added.

Niraj Patel, Speed’s CEO, also spoke about the investment. He said Speed aims to convert speculative crypto ideas into real-world tools for global use. “Lightning gives us speed; stablecoins give us universal access; our infrastructure brings it all together for consumers, creators, and merchants,” Patel explained.

Tether Continues to Spread Investment Across Different Sectors

The strategic investment in Speed adds to over 140 firms that Tether supports as the stablecoin company diversifies revenue generation. The company’s investments span Bitcoin mining, football clubs, energy, finance, and even Artificial Intelligence (AI).

On December 13, Crypto2Community reported that Tether offered to purchase Exor’s full stake in Juventus Football Club. The offer also includes investing up to €1 billion to support the football club’s growth. Exor has rejected the bid, maintaining the controlling stake of 65.4%. This means that the football club will remain under the control of the Agnelli family. 

In related news, Tether joined a €70 million funding round for Generative Bionics, an Italian humanoid robotics startup. Venture Capital’s AI fund led the financing round with strong support from other Tech and AI-focused firms, including RoboIT, AMD Ventures, Eni Next, and Duferco.  

Funding for these investments stems from Tether’s remarkable profit reserves, accumulated over the past few years. The company’s main revenue generation comes from interest on US Treasury bills, which backs USDT. The company’s recent financial report shows that it raked in over $10 billion in profits across the first three quarters of this year. The company hopes to build on the $13.4 billion profit accumulated in 2024, making it one of the most profitable firms per-employee basis.