Stablecoin issuer Tether Holdings is reportedly considering entering commodity trade finance as its cash pile grows.
Tether Holdings, which made a net profit of $5.2 billion in the first half of 2024, is exploring the possibility of lending to commodity trading companies, according to a Bloomberg report.
Citing “people familiar with the matter,” the report said Tether has entered into discussions with several commodity trading companies with a view to providing U.S. dollar financing to the sector.
Tether CEO Paolo Ardoino told Bloomberg that he believes the opportunities in the commodity trading sector are “huge in the future.”
“We probably won’t reveal how much we plan to invest in commodity trading. We are still developing our strategy. We are interested in exploring different commodity trading possibilities. ”
Tether is also in talks with commodity trading companies about how to use its flagship stablecoin, USDT, to facilitate its operations, according to Bloomberg’s anonymous sources.
According to Bloomberg, while large commodity trading companies have an easier time obtaining credit, smaller companies are at a disadvantage in this regard. The report added that Tether’s funding may not be subject to the same regulatory hurdles as traditional banks, making it a potentially attractive source of credit for commodity trading companies. There is.
USDT currently boasts a market cap of more than $119 billion, while its closest rival, Circle’s USDC, has a market cap of just under $35 billion.
Never miss a beat – Subscribe to get email alerts delivered straight to your inbox
Check price action
follow me ×Facebook and Telegram
Surf the Daily Hoddle Mix
Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and you are responsible for any losses you may incur. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated image: Mid Journey
