Catenaa, Wednesday, November 13, 2024- Stablecoin issuer Tether announced Novermber 08 that it had completed its first-ever USDT-based crude oil transaction in the Middle East, marking a significant expansion beyond its flagship digital asset.
The $45 million transaction, finalized by Tether Investments in October 2024, involved the transport of 670,000 barrels of crude oil between a top commodity trader and a major publicly traded oil company.
This move is part of Tether’s broader strategy to tap into the $10 trillion trade finance market. Its new Trade Finance division, launched earlier this year, aims to modernize global trade flows by offering alternative capital solutions for commodity trading companies.
Unlike Tether’s stablecoin reserves, the division leverages its high profitability to finance transactions and provide liquidity to international markets.
CEO Paolo Ardoino emphasized the company’s goal to foster efficiency and innovation in global finance. “We’re bringing speed and lower costs to markets that have historically relied on slower, more costly payment structures,” Ardoino stated.
Tether has been exploring ways to use its stablecoin in trade finance, particularly in regions like Venezuela and Russia, where U.S. sanctions have restricted traditional financing.
The transaction marks the first of many planned ventures into commodities, including financial services, agriculture, and asset-backed sectors. With a recent Q3 2024 profit of $2.5 billion, Tether is positioning itself as a rising force in both digital finance and traditional commodities markets.
Tether continues to promote the use of USDT in trade finance, offering reduced payment times and costs compared to traditional methods. The company’s significant financial backing, including $134 billion in assets, enables its expanding portfolio across industries like renewable energy, AI, telecom, and Bitcoin mining.
