Stablecoin issuer Tether to explore commodities trading opportunities
As it considers how to use its billions of dollars in profits, Tether Holdings Ltd. is considering lending to commodities trading firms. The news that Tether is looking into opportunities in commodities trading was first reported by Bloomberg on Monday.
Citing unnamed sources familiar with the matter, it further stated that Tether has "discussed U.S. dollar lending opportunities with several companies" involved in commodities.
According to Paolo Ardoino, CEO of Tether, his company is considering new prospects in the fields of commodities trading and traditional finance. Ardoino confirmed with Bloomberg that Tether is just beginning to explore the various TradeFi and commodity trading opportunities. Since this business line will be carried out through the separate Tether Investment vehicle, it won't affect the reserves of stablecoins.
Tether explores new fronts
The stablecoin issuer seems to have funds to spend, whether it is through investments or lending, as Tether has done in the past. According to Tether's most recent quarterly attestation, which was released in July, for the first half of 2024, Tether reported $5.2 billion in profits, the majority of which came from its $97.6 billion in investments in traditional assets like US Treasuries. Major nation-states like Germany, the United Arab Emirates, and Australia are not as exposed to US Treasuries as the firm is.
Additionally, the native stablecoin USDT has experienced impressive growth and consistently holds a leading position in the stablecoin industry. The market capitalization of USDT is getting close to $120 billion, which would be a new record high for the token.
Tether investment arm
Tether recently established separate divisions, including an investment arm, in addition to its role as the developer of the stablecoin with the largest market capitalization in the world.
One division, "Tether Power," will oversee the company's bitcoin mining investments, while another, "Tether Finance," will oversee the USDT stablecoin. "Tether Data," a third division, will be in charge of strategic investments in technology, including AI. Lastly, a section named "Tether Edu" will house a number of educational projects.
In an interview conducted back in June, Ardoino stated that the company would invest over $1 billion over a 12-month period.
Tether invests $200 million in Blackrock Neurotech
In April, Tether announced that it had invested $200 million in Blackrock Neurotech, a biotech firm that seeks to assist those suffering from neurological disorders, paralysis, and lost function.
Ardoino reaffirmed at the time that Tether's investments are separate from its stablecoin operations, which require the company's substantial capital reserves.
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