USDT issuer Tether has made a new foray into the oil industry with a $45 million deal for 670,00 barrels of crude oil
Tether, the world’s largest stablecoin issuer, has announced that its Investment Division has financed a notable deal in the commodities market. According to the update, the company financed the loading and transportation of 670,000 barrels of crude oil worth approximately $45 million. The transaction occurred between Tether and a publicly traded major oil company that required Middle Eastern crude.
Expanding Tether’s Influence in Global Trade Finance
This marks Tether Investment’s maiden crude oil financing in the region as it seeks to expand its services into global commodities trading. Notably, this business of Tether Investments differs from its stablecoin operations. However, it takes advantage of Tether Holdings’s huge profit.
Paolo Ardoino, CEO of Tether, explained that the successful financing of the crude oil deal marks a significant milestone. That is, Tether Investments has demonstrated its commitment to redefining trade in the sector with efficiency at its core. Ardoino maintained that with USDT, the oil market, which had relied on slower and more expensive payment methods, will now have faster and more cost-effective options.
Tether CEO emphasized that the Investment Division will not limit itself to just this sector but provide critical services for different commodities. This aim includes promoting greater inclusivity and global improvement in various commodities and industries.
Trade experts say the firm’s Investments’ transaction opens up opportunities for financing in many sectors. These include agriculture, technology asset financing, and more. According to them, the positive lies in the cost benefits for those embracing it. Essentially, Tether’s use of USDT significantly reduces payment times and costs compared to traditional methods.
Tether’s Foray into the Commodity and Technology Sectors
As reported by BGECrypto Tether, it embraced commodity trading financing in October. The move integrates its stablecoin, USDT, into commodity trading and creates opportunities for traders and investors in these sectors. Banks have traditionally funded commodities and even helped manage price volatility.
However, Tether’s involvement marks a new era in this regard. The company has also embraced investment in the technology sector. In a significant move, Tether recently invested $200 million into a biotechnology startup, Blackrock Neurotech. With the investment, Tether acquired the majority owner stake in Blackrock Neurotech. Industry sources explained it as part of Tether’s strategy to expand its influence outside the boundary of blockchain technology.
Amid these expansion moves, the Wall Street Journal (WSJ) reported that U.S. investigators were probing Tether. According to the report, the investigation included possible violation of Anti-Money Laundering regulations. In a swift reaction, Tether CEO Ardoino took to X to counter the WSJ, insisting that no evidence of investigation exists.
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