Tether Leads $25 Million Funding Round for Oobit’s Crypto Mobile App
Tether, the largest stablecoin issuer, has announced that it is leading a $25 million Series A funding round for Oobit, a crypto mobile payments app. The funding will support the ongoing development of Oobit, which allows users to make payments with their crypto at over 100 million retailers that accept Visa and MasterCard. An upcoming update to the app will also enable merchants to convert customer crypto into fiat seamlessly.
Tether’s CEO, Paolo Ardoino, stated that the company’s backing of Oobit is driven by a shared vision to drive global adoption of cryptocurrencies. Oobit is available on both Apple App Store and Google Play and supports payments with Tether, Bitcoin, Ethereum, XRP, and other leading cryptocurrencies. Notable investors in this funding round include CMCC Global’s Titan Fund, 468 Capital, and Solana co-founder Anatoly Yakovenko.
Tether’s Financial Strength
Tether’s USDT stablecoin is currently the largest by market capitalization, with $96 billion. According to a recent attestation report, Tether made a profit of $6.2 billion in 2023. The company holds assets such as US Treasuries and money market funds to ensure the value of each USDT remains at $1 USD. Tether’s CEO claims that the company’s excess equity covers its secured loans and that 90% of USDT in circulation is backed by cash and cash equivalents.
However, Tether’s market dominance has raised concerns about regulatory compliance and transparency. A report by JP Morgan highlighted these issues as potential risks to the market.
Hot Take: Tether Supports Crypto Adoption with Oobit Investment
Tether’s investment in Oobit’s crypto mobile app demonstrates its commitment to driving the widespread adoption of cryptocurrencies. By enabling users to make seamless crypto payments at millions of retailers, Oobit breaks down barriers and facilitates frictionless transactions for crypto holders worldwide. With its financial strength and market dominance, Tether’s support can significantly contribute to the growth and acceptance of cryptocurrencies in the mainstream economy.
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