Tether Explores Lending Opportunities in Commodity Trading Sector
Tether Holdings, the issuer of the prominent stablecoin USDT, is considering entering the commodity trading sector by offering loans to trading companies, according to a Bloomberg report.
The firm has engaged in talks with various commodity traders about providing US dollar lending options. Many smaller firms in this industry face challenges in securing the credit needed to finance shipments of essential goods like oil and metals.
Tether’s lending initiative could present a viable solution, streamlining transactions while bypassing the strict regulations associated with conventional financial institutions.
CEO Paolo Ardoino confirmed Tether’s interest in this area but stressed that discussions are still in the preliminary phase.
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He noted that the potential for growth in commodity trade financing is significant but refrained from disclosing specific investment plans.
USDT has already been instrumental in facilitating cross-border transactions for Russian metals producers and Venezuela’s state oil company, showcasing its role in international trade, especially within sanctioned markets, and indicating a shift towards alternative financial solutions in commodity trading.
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.
