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Completed in October 2024, the deal facilitated the transport of 670,000 barrels of crude oil and marked Tether’s entry into the commodity trading market.
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Stablecoin issuer Tethe has debuted on the commodities market by financing a $45 million crude oil transaction.
According to a Nov. 8 announcement, the deal involved a publicly traded oil company and a commodity trader. The transaction in Tether (USDT) was completed in October and facilitated the transport of 670,000 barrels of Middle Eastern crude oil.
The deal was led by Tether’s Trade Finance business — an arm of the company focused on integrating blockchain technology into traditional trade finance operations. Tether first hinted at lending billions of dollars to commodities trading companies in early October, seeking to provide financing alternatives for an industry largely dependent on traditional banks. According to Tether, the trade finance industry has a market value of $10 trillion.
“With USDT, we’re bringing efficiency and speed to markets that have historically relied on slower, more costly payment structures,” said in a statement Tether’s CEO Paolo Ardoino. “This transaction marks the beginning, as we look to support a broader range of commodities and industries, fostering greater inclusivity and innovation in global finance.”
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According to a Bloomberg report, the company has been exploring the use of its stablecoin as a way for global traders to avoid the dollar in countries like Venezuela and Russia that have been sanctioned by the United States.
Tether’s billionaire earnings were used to finance the deal. The company posted a profit of $2.5 billion for the third quarter of 2024, bringing its total earnings for the year to $7.7 billion. Its total assets amounted to $134.4 billion as of Sept. 30, with $102.5 billion from its reserves held in US Treasury bills. Tether also reported to hold an additional 7,100 Bitcoin, worth over $530 million at the time of this writing.
The company has been diversifying its business with investments in startups across several industries, including renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education.
Related: Stablecoins and the dollar: Allies or adversaries in the new financial era?
This article first appeared at Cointelegraph.com News
