Tether Holdings Ltd., which issues stablecoins, may be looking to venture into the financing of commodity trades due to its growing cash reserves.
Bloomberg reportTether Holdings is looking into the possibilities of lending money to commodity trading companies. The company generated a net profit of $5.2 billion dollars in the first six months of 2024.
Citing ‘people familiar with the matter,’ the report says that Tether has entered discussions with several commodities trading companies with a view of offering US dollar loans to the sector.
Bloomberg reports that Tether Ceo Paulo Ardoino believes there will be opportunities for commodities traders. “massive in the future.”
“We likely are not going to disclose how much we intend to invest in commodity trading. We are still defining the strategy. We are interested in exploring different commodity trading possibilities.”
Bloomberg quotes anonymous sources as saying that Tether also spoke with commodities trading firms to discuss ways of using its stablecoin. USDTThey can use a variety of tools to facilitate their business.
Bloomberg says that although large commodities firms enjoy easy credit access, smaller traders are less fortunate. Tether, according to Bloomberg’s report, could be a source of credit that is attractive for commodity trading firms because its funding may not be as subjected to regulatory barriers like traditional banks.
USDT has a current market capitalization of $119 billion, while its closest competitor Circle’s is only $89 billion. USDCMarket capitalization for is just over $35 billion.
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