Tether Invests $100 Million in Argentinian Agro Business

Tether has invested $100 million in Latin American agro-business Adecoagro to buy into 9.8% of the company.

Household Web3-native company Tether has taken a step beyond the blockchain and tech realms to invest in Argentinian agriculture conglomerate Adecoagro. The stablecoin issuer has bought into 9.8% of the company, amounting to 10,048,249 common shares, for which it paid $100 million.

Tether has previously invested in Web3-related peer-to-peer platforms and Bitcoin mining firms. It has also put money into artificial intelligence startups and digital education initiatives. However, its indulgence in Adecoagro stock makes this a first-of-its-kind investment for Tether. “The principal business of Tether Investments Limited is primarily to make strategic investments in emerging technologies, such as artificial intelligence and peer-to-peer platforms, sustainable Bitcoin mining operations, and digital education initiatives,” Tether’s filing with the SEC read. “Tether Investments Limited is also involved in funding and supporting projects that enhance financial inclusion and build resilient financial infrastructure worldwide.”

Tether’s shift toward an agriculture company may come as a surprise to many. Adecoagro business verticals touch verticals like sugar, ethanol, energy, dairy, rice, and more. Nevertheless, its massive foothold in the Argentinian markets will offer Tether the opportunity to diversify its investment portfolio and derive profits from a well-established giant. Adecoagro has been operating in the Latin American markets since 2002.

Tether’s Stablecoin Market Cap Faces Competition From Newer Stablecoins

Tether’s move to expand its investments comes when it faces growing competition in the stablecoin market. Being the largest stablecoin issuer with its USDT token, Tether has mostly competed with Circle’s USDC token. However, big-name cross-border payment companies are entering this market to disrupt it. PayPal started issuing its stablecoin, PYUSD, not too long ago. Its vast user base poses threats to the market cap of USDT over the following years. Ripple, too, has announced that its RLUSD stablecoin will make its way to the institutional markets soon.