Tether's Entry into Commodities Trading

Leading stablecoin firm Tether is aiming to establish itself as a major player in the commodities trading market.

In October, the company announced its entry into the oil market by trading 670,000 barrels of Middle Eastern crude oil, valued at approximately $45 million, which marks Tether Investments’ first crude oil transaction in the region. This development underscores Tether’s growing role in global commodities trading.

Tether, the issuer of the largest stablecoin USDT, has proven to be one of the most profitable crypto companies, reporting a net profit of $2.5 billion in the third quarter of 2024, totaling $7.7 billion year-to-date.

Tether Investments, a new division of Tether, aims to support the $10 trillion trade finance industry. This division operates separately from the reserve assets backing the USDT stablecoin.

CEO Paolo Ardoino, who was elected last year, is diversifying Tether's balance sheet by investing in various industries, including artificial intelligence and peer-to-peer communications.

According to Ardoino, the deal is structured as a “short-term product prepayment,” indicating that Tether will receive the principal amount and interest back, functioning similarly to debt financing.

Yogita Khatri contributed reporting.