Tether to Increase Commodity Trading Financing to $5 Billion by 2026
Date: 2024-11-29 Author: Oliver Abernathy Categories: BUSINESS
This strategy, according to Ardoino, allows the issuer of the USDT stablecoin to earn interest income while providing liquidity to a sector that constantly needs such services. He emphasized that the Tether Investments division already cooperates with several of the largest players in the commodity market.
“Using USDT in transactions allows for increased transparency and speed of transactions, which is extremely important for traders,” the head of the company noted.
Tether Investments recently participated in an oil supply deal, financing it with $45 million in USDT. It is important to note that this division operates independently of the company's main business and uses funds earned from transactions with USDT without affecting the issuer's reserves.
Tether's financial results confirm the success of its chosen strategy: for the first three quarters of 2024, the company's net profit amounted to $7.7 billion. In addition, in June, Paolo Ardoino announced his intention to invest more than $1 billion during the year, focusing on creating an alternative financial infrastructure in developing countries.
When asked about the motives for working in the commodity sector, Ardoino emphasized that for many developing countries, commodity exports are a key source of income. The popularity of USDT in such markets makes this type of financing especially relevant. At the moment, the company is focused on transactions with gold, oil, and natural gas.
Meanwhile, in Europe, Tether intends to stop supporting the EURT stablecoin, pegged to the euro. The company's main focus in the EU will be on developing external projects and promoting the Hadron platform for working with real assets (RWA).
