Major stablecoin issuer Tether has revealed plans to explore commodity trading opportunities after securing huge profits, Bloomberg reported on Monday.
Representative stablecoin issuers are considering lending to multiple companies in the above fields. With a market capitalization of nearly $120 billion, the USDT stablecoin has the potential to be integrated into traditional commodity trading.
Physical commodity traders typically rely on revolving credit facilities to enable them to access capital in a reliable manner. This helps reduce possible risks, considering that commodity prices are highly volatile. Although traders tend to rely on banks to secure the funds they need, non-bank financial institutions are also emerging as increasingly important players.
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Tether reportedly wants to position itself as a more efficient lender as it can offer faster payments due to a relaxed regulatory environment.
For now, Tether CEO Paolo Ardoino said the company is just “developing its strategy.”
