Tether, the largest issuer of stablecoins, may consider lending USD to commodity trading institutions, according to reports.
Tether (USDT) aims to strengthen its position in traditional financial markets by providing loans to companies, Bloomberg reported, citing anonymous sources familiar with the matter. Tether CEO Paolo Ardoino reportedly said the company’s investment arm had early-stage conversations focused on the possibility of traditional financial lending.
Ardoino emphasized that Tether Investment will explore such opportunities separately from the USDT stablecoin business. This is not the first time Tether has offered lending capabilities. From 2019 to 2021, the company disbursed $11.6 billion in secured loans, with most transactions backed by Bitcoin (BTC) and some by Ethereum (ETH).
Tether Investment previously shared plans to increase capital deployment as the digital payments provider seeks new avenues to secure huge profits.
The company’s net profit for the first half of 2024 reached $5.2 billion, setting a new record. Ardoino revealed in June that Tether would invest more than $1 billion across the board over the next 12 months. In addition to investing in Bitcoin and crypto mining businesses, Tether backed BlackRock Neurotech with $200 million, supported a decentralized artificial intelligence data center, and invested $1.5 million in wallet providers targeting emerging markets. injected dollars.
Tether’s entry into traditional finance comes as regions focus on standardizing regulations for cryptocurrencies and stablecoins. Rumors regarding the future of USDT in Europe have been circulating as the European Union’s crypto market regulations come into effect. Ardoino himself claimed that MiCA could endanger European stablecoins.
In the United States, policymakers are moving toward comprehensive stablecoin legislation that would allow banks to issue fiat-pegged tokens. New players like Ripple have also announced stablecoin plans and could challenge USDT’s market dominance.
