- The first half of 2024 just set a profit record of $5.2B. Tether aims to expand lending into commoditieschallenging traditional banks.
- Tether has the potential for faster, less regulated credit lines Attractive to credit-constrained traders, especially small trading companies.
- Venezuelan and Russian companies USDT has been used in commodity trading to avoid the threat of sanctions.
USDT dominant Stablecoin. this Global stablecoin market sits at $165Bthe proportion of stablecoins supported by legal currency is close to $160B, a record high.
Tether alone has a market capitalization of over $120Bup 40% in twelve months. Tether has also accumulated huge funds $5.2B profit First half of 2024.
Now, Tether has plans in place for some cash – Lending to commodity traders to make more money.
Let’s take a closer look at Tether’s plans to get into commodities trading, how it will work, and what it means for cryptocurrency adoption.
Tether challenges traditional lenders
Tether Holdings Ltd (issuer of the largest stablecoin $USDT) is Explore lending opportunities in the commodities sector.
The company has recently been represented at leading industry events in Switzerland and London, and Discuss with Bloomberg Potential plans to expand into commodities finance.
As traditional banks have long dominated commodity trade finance, Tether’s entry could provide a new source of funding for businesses desperate for credit.
commodity- From oil to gold, including mining, heavy metals and more – Typically traded globally, from production to processing centers and onward.
All these sports are expensive and Most commodity companies rely heavily on lenders.
But commodity financing has its own challenges:
- low profit margin
- Goods are frequently traded across borders
- Trust between parties is often low
Transporting oil or heavy ore carriers thousands of miles around the world requires Pass checkpoints and overcome regulatory hurdlesand usually only travel if the goods are intact.
This is not a foolproof thing and major funding sources are well aware of the risks involved.
The result is that while large commodity companies rely on economies of scale and good relationships with traditional finance, New companies are hard to break into.
$USDT provides an alternative to the US dollar
Tether’s approach is less regulated It offers traders the advantages of speed and flexibility compared to banks.
With significant investment profits and a dedicated team, Tether CEO Paolo Ardoino believes the industry has huge future potential.
latest scandal Shaking up the commodity finance industry May create an opportunity for Tether to exploit.
There is another use case for commodity finance and $USDT – Alternative methods of settling international transactions For countries subject to U.S. sanctions.
state oil company of devenezuela PVDSA to $USDT Earlier this year, in order to avoid freezing the account.
On the other side of the world, numerous reports indicate Russian metal producers use USDT Promote merchandise trade with China.
Summary: Commodities show appeal of cryptocurrencies
Looking ahead, Tether’s investment strategy suggests Interest in alternative financial solutionsespecially for emerging markets.
As the stablecoin industry grows, $USDT adoption shows how Cryptocurrencies offer powerful alternatives to traditional finance.
