Tether Backs $134M Stablecoin Bet to Bring Crypto Into Everyday Use

Tether Investments participated in a US$134 million (AU$194.3 million) private placement in Stablecoin Development Corporation (SDEV), announced April 15, alongside R01 Fund LP and Framework Ventures.

The funding significantly increases its capital base and implies dilution for existing shareholders.

The company’s primary asset is 2.15 billion SKY governance tokens, equal to 9.15% of the total supply of Sky Protocol, the decentralised finance platform previously known as MakerDAO. 

Sky Protocol operates the USDS stablecoin, giving SDEV influence over protocol governance and exposure to stablecoin infrastructure at the protocol level.

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More Activities Beyond USDT

As per the press release, Tether’s participation extends its activity beyond USDT issuance into infrastructure and equity exposure. The investment provides access to a publicly listed vehicle tied to stablecoin and DeFi markets, allowing indirect participation in the sector through traditional financial markets.

Framework Ventures, a venture firm focused on decentralised finance, also joined the round, adding institutional backing from crypto-native investors.

SDEV plans to use the capital to expand infrastructure supporting stablecoin payments, transfers, and cross-platform financial systems. The structure of the raise, at more than three times the company’s pre-raise market value, indicates a recapitalisation aimed at accelerating growth.

The investment connects three components: Tether’s position in stablecoin issuance, Sky Protocol’s decentralised infrastructure, and SDEV’s public market access.

Recently, Tether made promises to perform a long-awaited audit, but the accounting firm remains a mystery, as always.

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