Tether’s trade finance division funds first oil deal via USDT

Share This Post

Tether leveraged its USDT stablecoin to fund a $45 million crude oil transaction in the Middle East through its trade finance division, marking the first such deal in the region. 

According to a Tether statement, the deal consisted of 670,000 barrels of crude oil and involved a publicly traded oil “super-major” and a “top-tier commodity trader.” However, the company didn’t reveal which firms took part in the deal.

Tether CEO Paolo Ardoino said the crypto firm aims to leverage USDT to enhance efficiency and speed in markets that historically relied on more costly and slower structures. He added:

“This transaction marks the beginning, as we look to support a broader range of commodities and industries, fostering greater inclusivity and innovation in global finance.”

Additionally, Tether said the inaugural transaction in the crude oil market is expected to set the stage for further expansion into diverse sectors, including finance, technology, agriculture, and asset-backed industries.

Leveraging significant profits

In its Oct. 31 attestation report, the USDT issuer disclosed a $2.5 billion profit for the third quarter, elevating the company’s year-to-date profit to $7.7 billion. Throughout the year, Tether’s profits were boosted by its investments in Bitcoin (BTC), gold, and US Treasuries.

Tether’s foray into traditional finance was reported in October, when Ardoino confirmed the rumors that the company would leverage its substantial profits to lend US dollars to commodity traders.

Tether’s Trade Finance division was launched earlier this year, and has been positioning itself within the $10 trillion trade finance industry. According to the firm’s announcement, the new division aims to streamline and modernize trade flows with accessible capital solutions. 

Notably, Ardoino said in October that the traditional finance fronts explored by the Trade Finance division will remain separate from the firm’s core stablecoin business. USDT dominates the stablecoin market, with over $121 billion in market cap as of Nov. 8, according to CryptoSlate data.

Tether is also exploring other investment fronts. In its October attestation report, the company revealed a $7.7 billion investment portfolio, diversified among the renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education sectors.

The post Tether’s trade finance division funds first oil deal via USDT appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Dogecoin’s 100% Weekly Gain Boosts $1 Goal: Will the DOGE Price Meet Buyer Demand?

The post Dogecoin’s 100% Weekly Gain Boosts $1 Goal: Will the DOGE Price Meet Buyer Demand appeared first on Coinpedia Fintech News The meme coin sector has seen significant growth recently,

Crypto And Trump Administration Is Just Getting Started, Brace Yourself Says Ron Hammond

The post Crypto And Trump Administration Is Just Getting Started, Brace Yourself Says Ron Hammond appeared first on Coinpedia Fintech News Ron Hammond, the director of government relations in

Robinhood CEO touts crypto’s cost advantage over TradFi operations

Robinhood CEO Vlad Tenev recently highlighted the substantial efficiency benefits of crypto operations, arguing that the crypto business model outperforms traditional finance in both cost and

Canary Capital Files for First Hedera (HBAR) Spot ETF with SEC: Will It Be Approved?

The post Canary Capital Files for First Hedera (HBAR) Spot ETF with SEC: Will It Be Approved appeared first on Coinpedia Fintech News It seems that the hype surrounding ETFs is back again following

BREAKING: First-Ever Hedera HBAR ETF Filed By Canary Capital

Applications for new altcoin exchange-traded funds (ETFs) have surged in recent months Now, on November 13, an Hedera HBAR ETF S-1 form was filed with the US Securities and Exchange Commission (SEC)

AI Firm Genius Group Follows MicroStrategy, Buys $120M in Bitcoin

The post AI Firm Genius Group Follows MicroStrategy, Buys $120M in Bitcoin appeared first on Coinpedia Fintech News Artificial intelligence firm Genius Group (GNS) is making waves in the realm of