Tether Expands in Agriculture With $100 Million Investment
Tether, the issuer behind the largest stablecoin globally, has invested $100 million to acquire a 9.8% share in Adecoagro, a major player in Latin American agriculture.
This move marks Tether’s entry into the agriculture sector, diversifying from its previous investments in emerging technologies and digital platforms.
In its filing, Tether disclosed that the investment was made using its own funds, resulting in ownership of 10,048,249 shares of Adecoagro. Adecoagro, founded in 2002, is a prominent milk producer in Argentina and has expanded into sugar, ethanol, and energy sectors in Brazil.
Tether’s stablecoin, USDT, remains the largest in the market, with a capitalization exceeding $118 billion. The company has also announced plans to launch a new stablecoin tied to the UAE dirham (AED) through a partnership with Phoenix Group and Green Acorn Investments, aiming to offer a fully backed digital dirham.
READ MORE: Japan Backs New Stablecoin Platform to Enhance Cross-Border Payments
The stablecoin market is becoming increasingly competitive. PayPal has introduced its own US dollar-pegged stablecoin, PayPal USD, which has already reached a market cap of over $1 billion. Additionally, Ripple Labs is testing its US dollar-pegged stablecoin, Ripple USD (RLUSD), on the XRP ledger and Ethereum, with plans for further expansion.
As of August 26, the total market cap for stablecoins, excluding algorithmic types, reached a record $168 billion. This surpasses the previous high of $167 billion in March 2022, though the figure had dropped to $135 billion by year-end.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
