Tether ventures into crude oil market by funding 45M dollar deal
The largest company in the digital asset market, Tether, announced today that its investment division has funded a physical crude oil deal between a top-tier commodity trader and a publicly traded super-major oil company.
Tether Trade Finance Completes Funding of First Middle Eastern Crude Oil Transaction
— Tether (@Tether_to) November 8, 2024
Read more: https://t.co/SENypbSSm6
This deal demonstrates Tether Investments' growing involvement in international commodities trading and represents the company's first crude oil transaction in the area.
Whaleinsider News reported that Tether was exploring opportunities in commodities trading. The report added that Tether has "discussed U.S. dollar lending opportunities with several companies" involved in commodities, citing anonymous sources with knowledge of the situation.
Tether makes entry into the oil market
With this recent major transaction, stablecoin firm Tether is looking to become a top player in the trading of commodities. Despite being the first of its kind, this deal opens the door for more lending options in the asset-backed, financial, technology, and agricultural sectors, the post added.
The deal, which was to make it easier to load and ship 670,000 barrels of Middle Eastern crude oil, is worth about $45 million and was finalized in October 2024. Paolo Ardoino, CEO of Tether, stated, "The financing of this significant crude oil transaction by Tether Investments underscores the company's commitment to reshaping the trade finance landscape.
Tether’s Trade Finance business
Tether's Trade Finance division, which was introduced earlier this year, has grown rapidly to support the $10 trillion trade finance sector by offering easily accessible capital solutions that modernize and streamline international trade flows.
This new venture, which is a part of Tether Investments, is separate from Tether's stablecoin reserves and leverages on its high profitability, as seen by the company's recently released quarterly attestation for the third quarter of 2024.
With the help of top-tier compliance and AML standards, which are enhanced by the transparency of blockchain networks, Tether is promoting the use of USDT in trade finance transactions, which lowers costs and shortens payment times—a clear advantage over traditional lending.
Tether registered $2.5 billion net profit in Q3 of 2024
Tether reported a net profit of $2.5 billion for the third quarter of 2024, bringing its total profits generated for the year to $7.7 billion. Tether said that more than $105 billion in cash and cash equivalents comprise its reserves, with a notable $102.5 billion in direct and indirect exposures to U.S. Treasuries.
Tether's stablecoin issuing companies reached a new all time high (ATH) of nearly $120 billion USDT in circulation, which is one of the quarter's highlights.
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