Tether, the stablecoin company, has made a venture capital fund investment into a Bermudian-based technology fund.

Arcanum Capital ISA announced that Tether has made the investment into Arcanum Emerging Technologies Fund II (Offshore) ISA, an incorporated segregated account of DigitalArray ISAC Ltd, dedicated to nurturing the next generation of decentralised technologies.

Arcanum Capital ISA is registered to conduct investment business by the Bermuda Monetary Authority pursuant to the Investment Business Act 2003.

Arcanum Emerging Technologies Fund II (Offshore) ISA is registered with the BMA as a professional closed fund under the Investment Funds Act 2006.

Arcanum Capital said the investment underscores the significance of its mission to accelerate the development of transformative Web3 technologies, including the bitcoin ecosystem, the intersection of blockchain and artificial intelligence, blockchain infrastructure, innovations in payments, and privacy-focused technologies.

It said: “Tether’s notable investment not only bolsters the fund’s capacity to support these critical initiatives but also marks a significant development in the evolution of venture capital within the blockchain space.”

Paolo Ardoino, chief executive of Tether and chief strategy officer of Holepunch, a platform for creating apps that don’t use any servers, said: “In a world increasingly shaped by geopolitical tensions and macroeconomic uncertainty, the need for resilient technology to safeguard our freedoms has never been more crucial.

“We are proud to partner with Arcanum Capital to stand at the forefront of empowering people with the tools and knowledge to protect their sovereignty.”

James McDowall, managing partner of Arcanum Capital, said: “We are honoured to have Tether as a founding investor in our second fund.

“Their contribution not only signals a strong vote of confidence in us as asset managers, but also validates our unique mission and approach.

“Our passion lies in the transformative technologies we invest in, and we are proud to have Tether alongside us in supporting this mission.”

In line with Tether’s investment thesis, a portion of the fund will focus on companies utilising Tether’s stablecoin for innovations in payments, as well as further bolstering the efforts of projects that use Holepunch technology.

Arcanum Capital has also secured Luganodes, which it said is the world’s fastest-growing blockchain infrastructure provider, as a limited partner in the fund, as well as selecting them as their preferred staking partner.