Tether Leads Crypto Mobile App Oobit’s $25 Million Series A Funding
Tether announced today that it led a $25 million Series A funding round for crypto mobile payments app Oobit.
Crypto’s biggest stablecoin issuer said the funding will contribute to Oobit’s ongoing development.
The mobile app enables users to tap and pay for goods and services with their crypto. Customers can use it at over 100 million retailers that accept Visa and MasterCard.
According to the press release, a planned Oobit update will enable merchants to seamlessly convert customer crypto into fiat.
Tether CEO Paolo Ardoino said in the statement that his company wants to help Oobit onboard new crypto users. To that end, he says Tether’s backing is “founded on a mutual vision to drive the widespread adoption of cryptocurrencies on a global scale. Oobit, in our perspective, stands as a catalyst, breaking down barriers and facilitating frictionless transactions for crypto holders worldwide.”
Oobit is available on both Apple App Store and Google Play. It enables payments via Tether, Bitcoin, Ethereum, XRP and other leading cryptocurrencies.
Other notable investors in this funding round include CMCC Global’s Titan Fund, 468 Capital, and Solana co-founder Anatoly Yakovenko.
Tether has cash to splash
The dollar-pegged Tether is the largest stablecoin by market capitalization, currently commanding a mighty $96 billion with its dollar-pegged USDT.
According to a 2023 fourth quarter attestation report, the company profited $6.2 billion last year. US Treasuries, reverse repurchase agreements and money market funds generated $4 billion of it. Tether holds these assets to ensure the value of each coin remains $1 USD.
Tether’s excess equity now more-than-covers the company’s previously criticized $4.8 billion in secured loans according to a recent tweet by Ardoino. The CEO also claims that “cash and cash equivalents” back 90% of the USDT in circulation.
The company’s clear market dominance has some worried, though. A recent report by JP Morgan said the offshore company’s “lack of regulatory compliance and transparency” poses a potential risk to the market.