Tether’s investment division has successfully executed its inaugural crude oil transaction in the Middle East, facilitating a multimillion-dollar trade between a prominent publicly traded oil firm and a leading commodity trader.
Launched earlier this year, Tether’s trade finance business is rapidly expanding its reach within the $10 trillion trade finance sector, offering innovative capital solutions designed to streamline and modernize global trade operations. The company has emphasized that its investment division operates independently from its stablecoin reserves. Recently, CEO Paolo Ardoino disclosed that these reserves include 82,454 BTC, 48.3 tons of gold, and approximately $100 billion in U.S. Treasuries.
The recent crude oil deal, announced on November 8, involved financing for the loading and transportation of 670,000 barrels of Middle Eastern crude oil in October, valued at around $45 million. This transaction highlights Tether’s growing influence as a significant player in the financial landscape.
Ardoino praised the transaction as a pivotal moment for Tether, reinforcing the company’s dedication to transforming the trade finance sector.
“With USD₮, we’re introducing efficiency and speed to markets that have traditionally depended on slower and more expensive payment methods. This transaction is just the beginning; we aim to support a wider array of commodities and industries, promoting inclusivity and innovation in global finance,” Ardoino remarked.
According to Tether, this crude oil deal sets the stage for utilizing USDT in various trade finance transactions across financial services, technology, agriculture, and asset-backed sectors. The investment arm leverages the company’s robust profitability, which reported a consolidated profit of $7.7 billion over nine months following a $2.5 billion profit in their Q3 2024 Attestation.
