Key Takeaways:
Rumble is shifting from ad-reliant revenue to direct, crypto-powered payments.
The new wallet looks to simplify global payouts for creators in emerging markets.
This move reflects broader trends toward decentralization in digital finance.
Industry skeptics note execution and regulatory hurdles remain.
Rumble is getting into payments. On Wednesday, CEO Chris Pavlovski said the video-sharing platform would roll out a digital wallet, built in collaboration with stablecoin issuer Tether.
The wallet is designed to help creators—especially those outside the U.S.—get paid more reliably and directly.
The announcement follows Tether’s $775 million investment in Rumble late last year.
That funding round was aimed at expanding Rumble’s infrastructure and building out new tools for its community of users and creators.
Digital Wallet to Address Global Payment Challenges
In a post on X, Pavlovski said the new wallet could give creators more consistent earnings than ad-based systems like YouTube’s Partner Program or Google AdSense.
According to him, many creators—particularly those in developing markets—struggle to earn anything close to what their U.S. counterparts receive for the same views. Ad revenue can vary wildly depending on where viewers are located.
While U.S.-based creators might see CPMs over $30, those in Southeast Asia or Africa might only get $2 to $5. That gap has left many relying on inconsistent income or third-party workarounds.
Pavlovski pointed out that these problems aren’t just about ads—they’re also about access. Traditional banks and unstable local currencies can make it hard for creators to get paid at all.
That’s where Tether comes in. With USDT integrated into the new wallet, Rumble says it will be able to send payments instantly and globally, without relying on banks or third-party processors.
Tether CEO Paolo Ardoino reposted the announcement, calling the wallet “for the people.”
He didn’t offer further details, but the endorsement signals strong support from Tether’s leadership.
Still, not everyone is convinced. One crypto-focused X user questioned whether Rumble has the backend capacity to make this work, especially since the platform is still refining core features like its “Shorts” format.
Others flagged advertising limitations and a lack of mainstream traction as hurdles the company needs to clear.
Tether’s Investment Pushes Rumble Forward—But Not Without Baggage
The digital wallet rollout is one of the first big projects to follow Tether’s December 2024 investment.
At the time, Tether pitched the deal as part of a broader push for decentralization and financial independence—goals it said aligned with Rumble’s vision.
After the deal closed, Rumble earmarked $250 million for growth initiatives.
The wallet is now one of its headline efforts, part of a larger strategy to move away from traditional monetization models.
But while Tether is funding new projects, it’s also still facing familiar questions.
The company has long said that every USDT token is backed one-to-one with assets, but critics have pushed for more transparency.
Tether now says it’s working with one of the Big Four accounting firms to deliver an independent audit. No timeline has been made public.
Regulators are watching too. Back in 2021, the CFTC fined Tether $41 million for misleading claims about its reserves.
And more recently, European regulators have tightened stablecoin rules under the MiCA framework, leading major exchanges—including Binance and Coinbase—to pull USDT from their EU platforms.
Bitcoin Joins the Picture
Rumble isn’t just leaning on stablecoins. In November 2024, the company’s board signed off on a plan to put up to $20 million into Bitcoin.
The idea was to diversify the firm’s treasury and give it more flexibility when it comes to long-term planning.
By March 12, Rumble had taken its first step—buying 188 BTC for $17.1 million. It hasn’t said whether more purchases are coming, but left the door open depending on market conditions.
Between its Bitcoin buy and its new digital wallet, Rumble is clearly thinking beyond ads and sponsorships. Whether that’s a smart bet—or a stretch too far—will depend on execution.
Frequently Asked Questions (FAQs)
By bypassing traditional banks, the wallet offers immediate crypto payouts that may smooth income flow and empower talent in underbanked regions.
Execution, technical, and regulatory hurdles could slow adoption. Critics worry backend capacity and transparency might delay seamless integration of crypto payments.
Rumble’s pivot to a crypto-based model signals a move from sole reliance on ads toward a direct payment system that could diversify revenue and redefine monetization norms.
The post Rumble to Launch Digital Wallet Backed by Tether Investment appeared first on Cryptonews.
