Hassan Maishera
TL;DR
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Stablecoin issuer Tether is exploring opportunities in commodities trading and TradFi.
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Tether is the leading stablecoin issuer, with USDT’s market cap now close to $120 billion.
Tether Considers New Opportunities in TradFi and Commodities Trading
Tether CEO Paolo Ardoino has revealed that the stablecoin issuer is considering new opportunities in traditional finance and commodities trading. During an interview with The Block, Ardoino pointed out that Tether is looking to expand its reach beyond the crypto space. He said,
"Tether is in the early exploration of different commodity trading and TradeFi opportunities. This business line won’t have impact on stablecoins’ reserves, since it will be performed via the Tether Investment vehicle that is separated."
Tether is currently the largest stablecoin in the world, with its USDT having a $119 billion market cap. However, the company recently launched an investment arm as it looks to expand its reach in the financial markets.
In June, Tether allocated over $1 billion in deals over the next 12 months, focusing on financial infrastructure, AI, and biotech.
According to a Bloomberg report on Monday, Tether is exploring opportunities within commodities trading. Bloomberg added that the stablecoin issuer has discussed U.S. dollar lending opportunities with several firms working in commodities.
The opportunities Tether is exploring within the commodities and TradFi ecosystem remain unclear. However, the company continues to generate massive profits in the crypto space.
Tether reported a record $5.2 billion profit in the first half of the year, with its U.S. debt holdings surpassing $97 billion. Hence, the company has the necessary liquidity to explore opportunities in other financial markets.
