Tether’s trade finance division recently made headlines by successfully funding its first oil deal using USDT, the company’s stablecoin. The $45 million crude oil transaction took place in the Middle East, marking a significant milestone for Tether’s foray into traditional finance.
This groundbreaking deal involved 670,000 barrels of crude oil and included collaboration with a publicly traded oil company and a top-tier commodity trader. While the specific firms involved were not disclosed, Tether CEO Paolo Ardoino expressed the company’s commitment to using USDT to improve efficiency and speed in markets that have historically been slower and more expensive.
Ardoino stated that this transaction is just the beginning for Tether, as they plan to expand into a variety of sectors, including finance, technology, agriculture, and asset-backed industries. The success of this oil deal sets the stage for future growth and innovation in global finance.
Tether’s profits have been on the rise, with a $2.5 billion profit reported for the third quarter and a year-to-date profit of $7.7 billion. These profits have been driven by investments in Bitcoin, gold, and US Treasuries. The decision to enter traditional finance was made in October, with plans to use profits to provide US dollar loans to commodity traders.
The Trade Finance division of Tether was established earlier this year and aims to modernize trade flows by providing accessible capital solutions. While the division explores opportunities in traditional finance, it remains separate from Tether’s core stablecoin business. USDT currently dominates the stablecoin market with a market cap of over $121 billion as of November 8th.
In addition to its trade finance endeavors, Tether is also exploring investments in renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education. The company’s diverse investment portfolio highlights its commitment to innovation and growth across various sectors.
Overall, Tether’s successful funding of the oil deal using USDT showcases the company’s dedication to revolutionizing traditional finance and driving inclusivity and innovation in global markets. This milestone paves the way for future expansion and opportunities in a wide range of industries, solidifying Tether’s position as a leader in the world of digital finance.
