Tether, the issuer of the USDT stablecoin, has made a significant move into the oil trade industry by financing a $45 million deal for 670,000 barrels of Middle East crude oil. This marks Tether’s entry into the $10 trillion global trade finance industry, where it aims to streamline processes and reduce costs associated with cross-border transactions.
The transaction, which took place in October, involved a major oil company and a top-tier commodity trader. Tether CEO Paolo Ardoino expressed excitement about this new venture, stating that this is just the beginning as they plan to support a wider range of commodities and industries in the future.
While Tether’s USDT stablecoin is widely used in the crypto trading world, the company has been expanding its reach into various sectors including venture capital, bitcoin mining, and artificial intelligence. Tether has reported significant profits this year, mainly from yields earned on its $80 billion stockpile of U.S. Treasury bills. These profits have allowed the company to diversify its investments and move beyond stablecoin issuance.
Despite recent allegations of U.S. criminal investigation for potential violations of sanctions and anti-money laundering laws, Tether has denied any wrongdoing. Ardoino has stated that the company respects American sanctions and remains committed to being a significant buyer of U.S. debt.
Overall, Tether’s foray into the oil trade industry signals a new phase of growth and diversification for the company. With its strong position in the stablecoin market and its expanding portfolio of investments, Tether is poised to play a significant role in shaping the future of global trade finance.
