Tether Invests $5.2 Million in Ark Labs to Enable Stablecoin Payments on Bitcoin Network
Tether, issuer of the USDT stablecoin, has participated in a $5.2 million funding round for Ark Labs. The investment aims to develop technology that enables direct stablecoin payments over the Bitcoin network.
Ark Labs is developing a software platform called Arkade, designed to enhance Bitcoin’s capabilities by providing a programmable layer for faster transactions and supporting the creation of diverse financial applications, including payment networks and digital financial instruments.
According to Marco Argentieri, Bitcoin is one of the world’s most liquid digital assets but lacks the programmable infrastructure required for modern financial applications. Arkade aims to fill this gap by enabling the development of advanced financial applications directly on the network.
With the new funding, Ark Labs has raised a total of $7.7 million, which will accelerate platform development and broaden adoption among developers and fintech companies.
Paolo Ardoino emphasized that stablecoins initially emerged on the Bitcoin network, and expanding their use on this blockchain remains a priority. Tether’s investment is part of a broader strategy to support financial infrastructure projects beyond stablecoin issuance, including prior investments in platforms like Whop and cross-chain protocol LayerZero Labs.
Currently, Tether manages the world’s largest USD-backed stablecoin, with USDT’s market capitalization around $185 billion, widely used in digital payments and remittances, particularly in emerging markets seeking fast and cost-effective financial tools.