Stablecoin issuer Tether Holdings Ltd is reportedly contemplating venturing into commodity commerce financing amid a rising money pile.
In line with a Bloomberg report, Tether Holdings, which generated $5.2 billion in web income within the first half of 2024, is exploring the potential of offering loans to commodities buying and selling companies.
Citing ‘individuals aware of the matter,’ the report says that Tether has entered discussions with a number of commodities buying and selling corporations with a view of providing US greenback loans to the sector.
Tether Ceo Paolo Ardoino tells Bloomberg he believes the alternatives within the commodities buying and selling sector might be “huge sooner or later.”
“We seemingly are usually not going to reveal how a lot we intend to spend money on commodity buying and selling. We’re nonetheless defining the technique. We’re taken with exploring completely different commodity buying and selling potentialities.”
Bloomberg’s nameless sources say Tether has additionally spoken with commodity buying and selling companies about methods to make use of its flagship stablecoin, USDT, to assist facilitate their operations.
Whereas the big commodities buying and selling companies have easy accessibility to credit score, smaller gamers are deprived on this facet, in line with Bloomberg. The report provides that Tether might probably be a lovely supply of credit score for commodities buying and selling companies since its funding may not be topic to the identical regulatory roadblocks as conventional banks.
USDT at the moment boasts a market cap of over $119 billion whereas the closest rival, Circle’s USDC, has a market cap of just below $35 billion.
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