By 2026, the volume of funds allocated for commodity trading loans could grow to $3-5 billion, the company's CEO Paolo Ardoino said in an interview with The Block.
For the issuer of the USDT stablecoin, he said, this activity allows him to earn interest income by providing liquidity to a sector that “always needs it.”
Ardoino noted that Tether Investments is already working with several of the largest commodity traders.
“They are very interested in using USDT for trading because it increases transparency and speed,” he added.
In October, Tether Investments funded a $45 million USDT crude oil deal.
The division is separate from the company's main business and is funded by the stablecoin issuer's revenue, without using Tether's reserves.
Based on the results of the third quarter, the company reported net profit since the beginning of the year in the amount of $7.7 billion.
In June, Ardoino said Tether Investments planned to invest more than $1 billion over 12 months, with one of his priorities being the development of alternative financial infrastructure in emerging markets.
When asked about Tether's interest in commodities, Ardoino said that for many third-world countries, commodity trading is a major economic driver. Since USDT is especially popular with users in emerging markets, the company saw value in facilitating such trading.
Tether is primarily interested in financing deals with gold, oil and natural gas, the top manager noted.
“We are at the initial stage of this new opportunity,” the company’s CEO emphasized.
As a reminder, Tether will stop supporting the euro-pegged stablecoin EURT. In the EU, the company will focus on funding third-party projects and promoting its RWA platform Hadron.