Key Takeaways:
- Tether is exploring lending opportunities to commodity traders as a new avenue for deploying its record profits.
- The company reported $5.2 billion in profits in the first half of 2024, largely fueled by U.S. government bonds and the growing adoption of USDt.
- Tether’s potential involvement in commodities aims to leverage its profits in sectors like oil, precious metals, and futures trading.
Tether Holdings Ltd, the issuer of the USDt stablecoin, is considering lending to commodities trading firms to utilize its growing profits, according to a Bloomberg report on October 14.
The company is in talks with traders about offering U.S. dollar-denominated loans, though no official decision has been made.
Tether is exploring lending to commodities trading companies as it looks at ways to deploy its billions of dollars in profits, a move that could shake up an industry typically reliant on traditional banks for credit https://t.co/kGvCjhgtNh
— Bloomberg (@business) October 14, 2024
This move is part of Tether’s broader strategy to expand into mainstream commodities markets, including oil and precious metals, where companies often rely on credit.
Tether has reported record profits of $5.2 billion in the first half of 2024, driven by its holdings of U.S. government bonds and the widespread use of USDt.
These profits have fueled investments in sectors such as Bitcoin mining and AI infrastructure.
USDt, backed by dollar-denominated assets, remains the largest stablecoin with a $120 billion market capitalization.
Tether’s CEO, Paolo Ardoino, confirmed the company’s early-stage discussions but emphasized that the strategy is still being defined.
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