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The organization responsible for the USDT stablecoin participated in a $5.2 million funding round for Ark Labs, supporting technology that may enable stablecoins to transfer and settle using Bitcoin infrastructure.
Tether CEO Paolo Ardoino (Modified by CoinDesk)
What to know:
- Tether participated in a $5.2 million funding round for Ark Labs targeting programmable infrastructure for the Bitcoin blockchain.
- The initiative seeks to facilitate the movement and settlement of stablecoins, including Tether’s USDT, directly on Bitcoin.
- Tether issues the leading U.S. dollar stablecoin, which is increasingly utilized as an alternative for transactions and savings in developing markets.
Tether, the cryptocurrency company behind the widely used USDT stablecoin, announced on Thursday its investment in Ark Labs to enable programmable transactions on the Bitcoin network.
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This support was part of a $5.2 million funding round for the startup. Ark Labs is working on Arkade, a platform designed to facilitate quicker transactions and application development on Bitcoin. With this latest funding, the startup reports a total of approximately $7.7 million raised.
The initiative aims to enhance Bitcoin’s usability for payments and financial services that typically require swift settlement and automation. Arkade serves as an execution layer for developers to create services like payment systems, lending applications, and digital asset platforms.
"Bitcoin is the most liquid digital asset globally, yet it has been missing the programmable infrastructure essential for financial applications," remarked Marco Argentieri, CEO of Ark Labs. "Arkade intends to address that,” he added.
Tether indicated that this funding would aid in developing infrastructure that could support stablecoins on Bitcoin. Stablecoins are digital tokens tied to fiat currencies like the U.S. dollar and frequently operate across other blockchains such as Ethereum or Tron.
"Stablecoins originated on Bitcoin, and enhancing access on the Bitcoin network remains a key focus for us," stated Tether CEO Paolo Ardoino.
This investment represents part of Tether’s strategy to expand beyond its initial stablecoin issuance and promote the adoption of its $185 billion digital dollar token, USDT. Last month, the company also invested in the online marketplace Whop and the cross-chain protocol LayerZero.
