Stablecoin leader Tether announced that its trade finance department provided funding support for a Middle Eastern crude oil transaction for the first time in October this year, involving the loading and transportation of 670,000 barrels of Middle Eastern crude oil, with a transaction amount of up to $45 million. (Background: Tether earned $2.5 billion in net profit from gold and US Treasury bonds in Q3! Total assets and equity both reached historical highs) (Additional background: Tether proposed to 'tokenize' boron ore mines in Turkey and establish a cryptocurrency exchange in Istanbul) Stablecoin leader Tether revealed in October (according to Bloomberg) that it has discussed opportunities regarding US dollar loans with multiple commodity traders and intends to use its stablecoin USDT for more mainstream commodity trading. On November 8, Tether officially announced that its trade finance department participated in a Middle Eastern crude oil transaction for the first time in October this year. According to Tether, the transaction involved a collaboration between a listed oil company and a commodity trader, loading and transporting 670,000 barrels of Middle Eastern crude oil, with a transaction amount of up to $45 million. Simplifying global trade processes According to Tether's press release, Tether's trade finance business was launched earlier this year and operates separately from its stablecoin reserve business, aiming to simplify the processes required for global trade by providing convenient capital solutions to support a trade finance industry worth up to $10 trillion. In this regard, Tether CEO Paolo Ardoino stated in the press release: Tether's financial support for this significant crude oil transaction demonstrates our commitment to reshaping the trade finance landscape. Through Tether stablecoin USDT, we bring efficiency and speed to markets that have historically relied on slower and costlier payment structures. This transaction is just the beginning, and we hope to support more categories of goods and industries to promote greater flexibility and innovation in global finance. Finally, Tether also stated that USDT has unique advantages over traditional financial lending, being able to reduce trade costs, comply with anti-money laundering standards, and enhance transaction transparency and trust based on blockchain networks. What is trade finance? Trade finance is primarily used to support international trade. It allows importers and exporters to obtain the necessary funds during the transaction process and reduce risks. Essentially, trade finance ensures that exporters receive payment guarantees before goods are shipped, and importers can only pay after confirming that goods have been shipped or arrived. The main tools of trade finance include letters of credit (L/C), bank guarantees (BG), accounts receivable financing, and bill discounting. These tools help both buyers and sellers reduce trust risks and facilitate smooth transactions. For example, a letter of credit allows the seller to receive funds immediately after submitting shipping proof documents, while the buyer can pay after confirming that the goods have been shipped or arrived. Through trade finance, importers and exporters can not only improve liquidity but also reduce risks in transactions, ensuring that funds and goods are exchanged safely and effectively. USDT market cap exceeds $132.5 billion According to CoinGecko data, the market cap of Tether's stablecoin USDT has exceeded $132.5 billion, with a 24-hour trading volume reaching $127.1 billion, making it the third largest in the overall cryptocurrency market, following Bitcoin and Ethereum. Related reports: US Treasury advocates for stablecoins to be replaced by CBDCs, Tether's collapse could lead to a treasury disaster; WSJ: Tether is the underground financial king disrupting global sanction operations, S&P rating USDT nearing the most dangerous; Tether CEO: The US government can kill USDT with the push of a button, will not confront authorities. 'Tether completes $45 million USDT crude oil transaction, targeting $10 trillion trade finance market' was first published by BlockTempo (the most influential blockchain news media).

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