Tether’s Surprising $100M Move Into Agriculture as Stablecoin Wars Intensify

Last Updated on December 19, 2024

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An investor analyzing the price of tether, the token coin $USDT on a crypto exchange screen. Source: maurice norbert - stock.adobe.com

Key Takeaways:

Tether invests $100 million for a 9.8% stake in Latin American agribusiness Adecoagro, marking its first move into the agriculture sector.
Tether continues to dominate the stablecoin market with a $118 billion market cap, amidst competition from PayPal and Ripple.
Non-algorithmic stablecoins have reached a record $168 billion market cap, rebounding from 2022’s low of $135 billion.

Tether, the issuer of the largest stablecoin (USDT), has made a $100 million investment to acquire a 9.8% stake in Adecoagro, a Latin American agricultural company.

This marks Tether’s first move into the agriculture and food industry, following previous investments in emerging technologies like AI, Bitcoin mining, and digital education.

TETHER BETS $102 MILLION ON AGRICULTURE AS CRYPTO GOES GREEN

Tether just threw down $102 million for a 9.8% stake in Argentina’s agricultural giant Adecoagro, betting on farmland as a hedge against global instability.

The world’s largest stablecoin issuer says land is scarce… pic.twitter.com/Em1AhtUbjB
— Mario Nawfal’s Roundtable (@RoundtableSpace) September 8, 2024

Adecoagro, founded in 2002, is a leading milk producer in Argentina and operates in Brazil’s sugar, ethanol, and energy sectors.

Amid growing competition in the stablecoin market, Tether remains dominant with a market cap exceeding $118 billion.

It has also announced plans to launch a new stablecoin pegged to the UAE dirham.

USDT issuer Tether has acquired a 9.8% stake in Latin American agricultural giant Adecoagro for $100 million to diversify its investments into the agriculture and food sectors. Adecoagro is a major milk producer in Argentina and manages more than 193,000 hectares of sugarcane…
— Wu Blockchain (@WuBlockchain) September 8, 2024

Meanwhile, PayPal’s USD stablecoin has surpassed a $1 billion market cap, and Ripple is testing its own stablecoin on major blockchain networks.

By late August, the total market capitalization of non-algorithmic stablecoins reached a record $168 billion, reflecting strong market growth after a dip to $135 billion in late 2022.