As a seasoned crypto investor with a knack for spotting opportunities, this latest move by Tether into the commodities market has certainly piqued my interest. Having witnessed the evolution of cryptocurrencies from their humble beginnings to becoming a viable alternative for traditional financial systems, I’ve grown increasingly optimistic about the potential applications of stablecoins like USDT.
Tezos, a stablecoin issuer, has made its first appearance on the commodity market by funding a $45 million deal for crude oil.
As per an announcement on November 8th, the agreement was between a publicly listed oil company and a commodity dealer. The exchange, using Tether (USDT), occurred in October and enabled the transportation of approximately 670,000 barrels of Middle Eastern crude oil.
The initiative behind the agreement was primarily driven by Tether’s Trade Finance division, a sector within the company dedicated to merging blockchain technology with conventional trade finance practices. Back in early October, Tether signaled its intent to loan billions to commodities trading firms, aiming to offer financial solutions for an industry heavily reliant on traditional banking systems. As stated by Tether, the global trade finance market is estimated to be worth $10 trillion.
Paolo Ardoino, Tether’s CEO, stated that USDT [Universal Service Tether] is introducing swiftness and cost-effectiveness to markets that traditionally depended on slower and pricier payment systems. This transaction signifies the start of our journey as we aim to assist a wider variety of commodities and sectors, promoting increased accessibility and innovation in worldwide finance.
As a crypto investor, I’ve come across reports suggesting that my company is looking into utilizing its stablecoin as an alternative to the US dollar for international traders in nations such as Venezuela and Russia – both subject to U.S. sanctions. In essence, this could potentially allow these traders to sidestep dollar-based transactions, which may be restricted or difficult due to the imposed sanctions.
Tether’s billionaire earnings were used to finance the deal. The company posted a profit of $2.5 billion for the third quarter of 2024, bringing its total earnings for the year to $7.7 billion. Its total assets amounted to $134.4 billion as of Sept. 30, with $102.5 billion from its reserves held in US Treasury bills. Tether also reported to hold an additional 7,100 Bitcoin, worth over $530 million at the time of this writing.
The organization is expanding its corporate ventures by making investments in numerous startup sectors such as sustainable energy, cryptocurrency mining (specifically Bitcoin), artificial intelligence, communications, and learning institutions.
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2024-11-08 20:28