Tether, the company behind the popular stablecoin USDT, is looking to get into the business of lending money to commodity trading companies. They see a lot of potential in this area, especially since many smaller companies struggle to get the funding they need.
Why Tether?
Tether’s lending proposition is attractive because it’s not subject to the same strict regulations as traditional banks. This means they could offer faster payments and more efficient trading for companies.
Tether has the financial muscle to make this happen. They recently reported a whopping $5.2 billion in profits for the first half of 2024, showing they have plenty of cash to invest.
A Growing Trend
The commodity trading sector is changing. The war in Ukraine has caused big price swings and made it harder for companies to get the money they need. This has led to a growing interest in alternative funding methods, including stablecoins.
Tether is already seeing some success in this area. Two Russian metals companies are using USDT for international transactions, and Venezuela’s state-owned oil company is using it to pay for oil shipments.
Tether’s Plans
Tether is serious about this new venture. They’ve put together a team to explore opportunities and have been attending industry events to network and learn more.
It’s still early days, but Tether’s entry into the commodity trading sector could have a big impact on the industry.
