Tether’s trade finance division funds first oil deal via USDT

Tether leveraged its USDT stablecoin to fund a $45 million crude oil transaction in the Middle East through its trade finance division, marking the first such deal in the region. 

According to a Tether statement, the deal consisted of 670,000 barrels of crude oil and involved a publicly traded oil “super-major” and a “top-tier commodity trader.” However, the company didn’t reveal which firms took part in the deal.

Tether CEO Paolo Ardoino said the crypto firm aims to leverage USDT to enhance efficiency and speed in markets that historically relied on more costly and slower structures. He added:

“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.”

Additionally, Tether said the inaugural transaction in the crude oil market is expected to set the stage for further expansion into diverse sectors, including finance, technology, agriculture, and asset-backed industries.

In its Oct. 31 attestation report, the USDT issuer disclosed a $2.5 billion profit for the third quarter, elevating the company’s year-to-date profit to $7.7 billion. Throughout the year, Tether’s profits were boosted by its investments in Bitcoin (BTC), gold, and US Treasuries.

Tether’s foray into traditional finance was reported in October, when Ardoino confirmed the rumors that the company would leverage its substantial profits to lend US dollars to commodity traders.

Tether’s Trade Finance division was launched earlier this year, and has been positioning itself within the $10 trillion trade finance industry. According to the firm’s announcement, the new division aims to streamline and modernize trade flows with accessible capital solutions. 

Notably, Ardoino said in October that the traditional finance fronts explored by the Trade Finance division will remain separate from the firm’s core stablecoin business. USDT dominates the stablecoin market, with over $121 billion in market cap as of Nov. 8, according to CryptoSlate data.

Tether is also exploring other investment fronts. In its October attestation report, the company revealed a $7.7 billion investment portfolio, diversified among the renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education sectors.

The post Tether’s trade finance division funds first oil deal via USDT appeared first on CryptoSlate.