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Tether Investments, a trading and investing arm of stablecoin ecosystem Tether, just finalized its first-ever crude oil purchasing transaction. The company demonstrates more ambition in the commodities and real-world asset (RWA) trading spheres.
Tether's unit starts purchasing crude oil: Details
According to the official statement by Tether, a fintech heavyweight and issuer of U.S. Dollar Tether (USDT) dominant stablecoin, the company's investments arm completed its inaugural deal in the sphere of commodities trading.
The company facilitated the loading and transporting of 670,000 barrels of Middle Eastern crude oil, valued at approximately $45 million.
The transfer marks the first-ever Tether Investments transaction in the region and showcases the growing company's ambitions in the commodities trading segment.
Paolo Ardoino, CEO of Tether, underscores that using USDT for large-scale commodities and RWA trading might be a smart bet for entire industries:
Tether Investments’ financing of this significant crude oil transaction underscores our commitment to reshaping the trade finance landscape,” said Paolo Ardoino, CEO of Tether. “With USD₮, we’re bringing efficiency and speed to markets that have historically relied on slower, more costly payment structures. 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.
The Tether team highlights that the investments arm is fully separated from Tether’s stablecoin reserves and leverages the company’s high profitability.
Tether expands its presence in new segments
The pilot transaction paves the way to a wider range of lending opportunities, spanning the financial, technology, agricultural and asset-backed sectors.
As covered by U.Today previously, fintech giant Tether introduced a number of products in previously unexplored segments of the digital economy.
Starting from mid-2023, the platform is heavily investing into cryptocurrency mining software and supports a couple of "Green Mining" initiatives across the globe.