Tether, the world's largest stablecoin issuer, has just announced plans to invest $3 to $5 billion in the commodities market by 2026 through Tether Investment - the company's investment arm.
Commodity Finance: Profit From Interest Rates
CEO Paolo Ardoino said Tether Investment will provide loans to commodity brokers, focusing on trading oil, natural gas and gold. The goal is to generate stable returns from the interest on the loans, while also meeting the urgent liquidity needs of the commodity industry.
Accelerating Payments with USDT
In addition to providing financial support, Tether expects the USDT stablecoin to enhance the speed and efficiency of international payments, overcoming sanctions barriers and supporting cross-border transactions. An example is the financing of 670,000 barrels of oil worth 45 million USD in November 2024.
Revenue Diversification: Future Strategy
The expansion into the commodities market is considered a strategic move as Tether aims to reduce dependence on profits from US Treasury bonds in the context of the Fed's expected interest rate cuts.
• Q3/2024, the equity value of #Tether Investment has increased to 7.7 billion USD, prominently featuring a 102 million USD investment in the agricultural company Adecoagro.
• The company also commits to invest an additional 1 billion USD in 2024 to continue expanding its areas of operation.
Expansion Vision
With strong financial potential, Tether is not limited to oil or gold but has the capability to expand into other commodities. This move not only boosts trading volumes but also strengthens the position of #USDT🔥🔥 in the global financial ecosystem.
Conclusion
Tether's large investment plan in the commodities market not only demonstrates the ambition to diversify revenue sources but also serves as clear evidence of the growing role of stablecoins in traditional financial transactions. This could be a sign of a new era in connecting the crypto market with the real economy.
