Tether Lending Model Now Planned to Expand to Commodity Trading Firms
Key Points:
- Tether is considering lending to commodities trading firms, a sector traditionally dependent on banks for credit.
- The Tether lending model could benefit smaller traders struggling to access traditional credit lines, offering faster transactions.
Tether, the issuer of the world’s largest stablecoin, USDT, is mulling over lending to companies in the commodities trading firms.
Read more: Tether Transparency Problems Are Coming Under Heavy Criticism
Tether Weighs Lending to Commodities Trading Companies
The Tether lending model would considerably affect a sector conventionally dependent on banks for credit. According to a Bloomberg report, the company could consider deploying its substantial profits through the issuance of US dollar loans to companies in the credit-hungry commodities sector.
The meetings between Tether and commodities traders also touched on the potential use of USDT in mainstream commodity trades. USDT is already very popular among traders and producers in countries like Venezuela and Russia since US sanctions create problems with dollar transactions. Now, Tether is trying to extend this use case into larger commodity markets.
Commodity trading companies are in heavy reliance on credit lines to fund multimillion-dollar cargoes of oil, metals, and food deliveries. Companies of this nature may be particularly attracted to the Tether lending model, which would not be bound by the stringent regulations governing banks, thereby accelerating the pace at which they are paid for trades.
Tether Lending Model May Appeal to Smaller Traders
Private credit is already making forays into commodity trade finance, and Tether, for all its disinclination to publish audited financial results, boasts it has the capital to take a seat at the table. In its July financial statement, it declared $5.2 billion in profit for the first half of 2024.
In an interview with Bloomberg, Tether’s chief executive officer, Paolo Ardoino, confirmed that his firm was in the early stages of exploring opportunities in commodities. Not detailing any specific investment plans, the report stated that Ardoino emphasized that Tether saw the huge future potential for commodity trade finance.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
News
Tether Lending Model Now Planned to Expand to Commodity Trading Firms
Key Points:
- Tether is considering lending to commodities trading firms, a sector traditionally dependent on banks for credit.
- The Tether lending model could benefit smaller traders struggling to access traditional credit lines, offering faster transactions.
Tether, the issuer of the world’s largest stablecoin, USDT, is mulling over lending to companies in the commodities trading firms.
Read more: Tether Transparency Problems Are Coming Under Heavy Criticism
Tether Weighs Lending to Commodities Trading Companies
The Tether lending model would considerably affect a sector conventionally dependent on banks for credit. According to a Bloomberg report, the company could consider deploying its substantial profits through the issuance of US dollar loans to companies in the credit-hungry commodities sector.
The meetings between Tether and commodities traders also touched on the potential use of USDT in mainstream commodity trades. USDT is already very popular among traders and producers in countries like Venezuela and Russia since US sanctions create problems with dollar transactions. Now, Tether is trying to extend this use case into larger commodity markets.
Commodity trading companies are in heavy reliance on credit lines to fund multimillion-dollar cargoes of oil, metals, and food deliveries. Companies of this nature may be particularly attracted to the Tether lending model, which would not be bound by the stringent regulations governing banks, thereby accelerating the pace at which they are paid for trades.
Tether Lending Model May Appeal to Smaller Traders
Private credit is already making forays into commodity trade finance, and Tether, for all its disinclination to publish audited financial results, boasts it has the capital to take a seat at the table. In its July financial statement, it declared $5.2 billion in profit for the first half of 2024.
In an interview with Bloomberg, Tether’s chief executive officer, Paolo Ardoino, confirmed that his firm was in the early stages of exploring opportunities in commodities. Not detailing any specific investment plans, the report stated that Ardoino emphasized that Tether saw the huge future potential for commodity trade finance.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Related Posts
Latest
Turn Dips Into Moonshots: BTFD Coin Presale Ranks Among Best New Meme Coins with 100x Potential Alongside Just a Chill Guy and Mog Coin
South Korean Martial Law Forces CryptoQuant CEO to Call Musk for Help Immediately
Namada Launches Mainnet, Introducing Shielded Cross-Chain Transactions
Press Release
Turn Dips Into Moonshots: BTFD Coin Presale Ranks Among Best New Meme Coins with 100x Potential Alongside Just a Chill Guy and Mog Coin
