Key Takeaways
- Tether financed its first crude oil transaction using USDT, marking its expansion into trade finance.
- The transaction was part of Tether’s strategy to streamline global trade flows with its stablecoin.
Tether’s investment division completed its first Middle Eastern crude oil transaction, financing a $45 million deal between a major oil company and a commodity trader in October 2024, announced in a press release.
The transaction involved 670,000 barrels of crude oil and marks the expansion of Tether’s Trade Finance business, which launched earlier this year to serve the $10 trillion trade finance industry.
The financing operation is separate from Tether’s stablecoin reserves and utilizes the company’s profits, as detailed in its Q3 2024 quarterly attestation.
“Tether Investments’ financing of this significant crude oil transaction underscores our commitment to reshaping the trade finance landscape,” said Paolo Ardoino, CEO of Tether.
The trade finance division aims to provide capital solutions to streamline global trade flows using its USDT stablecoin.
“With USDT, we’re enhancing efficiency and speed in markets that once relied on slower, costly payments. This marks the start as we aim to support more commodities and drive inclusivity in global finance,” Ardoino added.
The company plans to expand its lending activities across financial, technology, agricultural, and asset-backed sectors, leveraging blockchain networks for transparency and compliance standards.
Source: https://cryptobriefing.com/usdt-crude-oil-trade/