Tether, known as the issuer of the stablecoin USDT, has made a major foray into robotics and physical AI by backing Europe’s up‑and‑coming humanoid robotics firm Generative Bionics with a contribution to a €70 million (approx. $81.6 million) funding round. Notably, this startup develops industrial robots utilizing research from the Italian Institute of Technology.
This funding round was led by CDP Venture Capital, a company supported by the Italian government and operating through its Artificial Intelligence Fund. This information was made public following the release of Generative Bionics’s statement, shared by a reliable source.
Some of the firms that participated in this round, apart from Tether, included AMD Ventures, the investment arm of the American chipmaker Advanced Micro Devices, and other industry investors.
Tether aims to solidify its position as a leader with major investments in AI
Tether’s investment marks another significant milestone in the company’s ongoing series of deals. Concerning its role in issuing the USDT stablecoin, sources acknowledged that stablecoins, cryptocurrencies that are typically connected to traditional currencies such as the dollar, have recently gained popularity, preferred by many as a suitable alternative method of payment.
These sources also elaborated that this type of cryptocurrency usually relies on cash reserves and US government bonds issued on a short-term basis to maintain its value.
Following this finding, Tether shared its forecast that the reserves supporting USDT will help it in attaining its target of generating approximately $15 billion in profit this year. The company made this prediction after noting high interest rates in the sector. Based in El Salvador, Tether has been utilizing these profits to expand its presence in various fields, including commodities, artificial intelligence, and sports.
The firm also disclosed its growing interest in fields of AI and data. According to the Chief Executive Officer (CEO) of Tether, Paolo Ardoino, the Fintech company seeks to establish an internet where individuals possess authority over their own details.
Meanwhile, apart from Generative Bionics, reports highlighted that the stablecoin issuer also backs Blackrock Neurotech, a pioneering medical device company that develops brain-computer interface (BCI) technology.
Regarding Tether’s $81.6 million investment in Generative Bionics, sources familiar with the situation who wished to remain anonymous implied that under this deal, the Italian Humanoid-Robotics firm will hire engineers from the Italian Institute of Technology as it prepares for industrial use.
The company will also utilize the funding to accelerate the development of its products and train its physical AI systems. This system is crucial as it integrates robotics with AI. In return, Generative Bionics’s robots effectively utilize tactile sensing, learning architectures, and human-robot interaction technologies in manufacturing, logistics, and other work settings.
As competition in the AI ecosystem intensifies and demand for AI technology increases, the Italian Humanoid-Robotics firm has announced that it will showcase its first fully functioning humanoid robot at CES in Las Vegas this January.
Tether explores commodities lending practices
Last month, Tether announced its intention to increase its lending to commodities traders significantly. Ardoino claimed that they adopted the plan after these traders offered around $1.5 billion in credit to this market.
During an interview, Tether’s CEO stated that the stablecoin issuer aims to enhance financing for trading in various commodities, including oil, cotton, wheat, and other agricultural goods, through this strategy.
On the other hand, reports revealed that the fintech company has also issued loans to its clients in both US dollars and its USDT stablecoin, which is pegged to the dollar.
However, even with this move, Tether is still considered a smaller player compared to the leading banks participating in commodities lending. Nonetheless, sources mentioned that the firm has strong earnings potential resulting from its almost $200 billion in reserves.
This, therefore, grants Tether the chance to compete effectively. “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,” Ardoino said.
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