TLDR
- Tether’s new strategy targets Rumble’s 51 million active U.S. users for USAT adoption.
- Rumble will launch a crypto wallet powered by Tether’s tech later this year.
- Tether holds a 48% stake in Rumble after a $775 million investment.
- USAT, a U.S.-focused stablecoin, aims to simplify digital currency use within the U.S.
Tether’s CEO, Paolo Ardoino, recently revealed that the company plans to leverage its investment in video streaming platform Rumble to promote the adoption of USAT, a stablecoin designed for U.S. users. Rumble, which has 51 million monthly active users, will soon launch a crypto wallet powered by Tether’s technology. This strategic move is aimed at introducing stablecoin usage to Rumble’s largely U.S.-based user base.
Tether’s USAT and Rumble Partnership
Tether, the issuer of USDT, recently launched USAT, a stablecoin specifically for the U.S. market. Unlike USDT, which operates globally, USAT is designed to comply with U.S. regulations. Ardoino explained that the aim of the partnership with Rumble is to introduce stablecoin usage to Rumble’s substantial U.S. audience.
Rumble, which has grown rapidly in recent years, will roll out a new crypto wallet later this year. The wallet will integrate Tether’s technology, providing users with an easy way to access and use stablecoins.
Ardoino emphasized that the goal is to convert Rumble’s active users in the U.S. into stablecoin users, thereby driving broader adoption of USAT in the country’s sophisticated financial system. “The most sophisticated country for financial rails is the U.S.,” said Ardoino during a panel at Token2049 in Singapore.
Rumble’s Role in the Expansion Strategy
Rumble’s decision to enter the crypto space aligns with its broader strategy of expanding its services and features for its growing user base. By offering a crypto wallet, Rumble will open up new avenues for its users to engage with digital assets, especially stablecoins. Given its large U.S. user base, Rumble is seen as an ideal platform to facilitate the broader acceptance of USAT.
The wallet will be powered by Tether’s technology, providing a seamless experience for users to manage their stablecoin holdings. The move aims to simplify the process for users to make payments, store value, or transfer assets within the platform. It could also position Rumble as a key player in the cryptocurrency adoption space, particularly in the U.S., where regulatory clarity for stablecoins continues to develop.
Tether’s Investment in Rumble
Tether has made a significant investment in Rumble, acquiring a 48% stake in the platform. This $775 million investment reflects Tether’s commitment to expanding beyond its stablecoin offerings into various sectors, including telecommunications and energy infrastructure.
The partnership with Rumble will serve as a major component of Tether’s strategy to increase the use of USAT and integrate its stablecoin into mainstream financial applications.
Ardoino’s statements at Token2049 revealed that Tether’s interest in Rumble goes beyond the immediate goal of promoting USAT adoption. Tether is also eyeing future growth in Africa, where the company plans to scale energy infrastructure and install a network of kiosks. The integration of USAT and other Tether technologies could potentially reshape economic systems in regions with limited access to traditional financial services.
Looking Ahead: USAT’s Future in the U.S. Market
The partnership with Rumble is just one aspect of Tether’s broader strategy to promote USAT in the U.S. and globally. Ardoino shared that the company is in talks with investors to raise up to $20 billion at a valuation of $500 billion. This funding will support Tether’s expansion into new industries, such as telecommunications and energy.
With Rumble’s wallet, Tether expects to drive adoption among U.S. users, further increasing the usage of USAT. As the stablecoin market evolves, Tether’s efforts to position USAT as a leading stablecoin in the U.S. will be closely watched. This partnership could potentially pave the way for more widespread adoption of digital currencies across various sectors.
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