Tether has finalized its first funding transaction in a Middle East crude oil investment, expanding the crypto company’s ventures beyond its flagship digital assets product.
The investment involves a major publicly traded oil company and a leading commodity trader, aiming to facilitate the loading and transportation of over 670,000 barrels of crude oil.
According to the announcement on Nov. 8, the Tether (USDT) stablecoin issuer’s investment arm completed the transaction in October 2024. The total value of the Middle Eastern crude oil is approximately $45 million, marking Tether’s initial entry into the crude oil business in the region.
It also highlights the crypto company’s growing traction in commodities trading across the world.
“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,” said Paolo Ardoino, chief executive officer of Tether.
Tether’s Trade Finance unit, which launched earlier this year, has experienced significant growth as the company targets opportunities in the $10 trillion trade finance market.
Notably, while this new venture is part of Tether Investments’ broader portfolio, it is not connected to the platform’s USDT stablecoin reserves. Tether stated that this investment is part of its expansion strategy, which also includes involvement in artificial intelligence, education, renewable energy, Bitcoin (BTC) mining, and telecommunications.
The company recently revealed it hit $7.7 billion in nine-month profits for 2024, with the third quarter attestation report also highlighting over $102 billion in U.S. Treasury holdings.
While the USDT circulation reached nearly $120 billion in the quarter, Tether said it held over $6 billion in extra reserves.
Source: https://crypto.news/tether-completes-first-middle-east-crude-oil-transaction/