Tether Enters Oil Market with $45 Million Deal
Stablecoin company Tether looks to expand its reach into traditional markets with $45 million crude oil deal.
Tether, the company behind the largest stablecoin in the cryptocurrency market, USDT, said it has entered the traditional commodities market with a $45 million deal for 670,000 barrels of crude oil from the Middle East.
Tether’s press release said:
“This transaction marks Tether Investments’ first crude oil investment, demonstrating the company’s growing role in the global commodities market.”
In mid-October, it was reported that Tether was looking to enter the traditional commodities market, establishing a dedicated division for the sector and sending representatives to industry conferences to seek business opportunities.
Tether said at the time that its stablecoin USDT could speed up and streamline commodity settlements, as well as bypass sanctions.
In its Q3/2024 operating report released in early November, Tether said it had made $2.5 billion in profit in the last quarter, bringing its total profit for 2024 to a whopping $7.7 billion. The company's holdings include $102 billion in U.S. Treasury bills, $5 billion in gold, and $4.8 billion in Bitcoin.
Tether has been working to expand its business and diversify its revenue sources amid a slowdown in U.S. Treasury yields in the coming months due to the Fed's rate cut schedule.
Tether Investment, the company’s investment management arm, raised its equity value to $7.7 billion, up from $6.2 billion in the previous quarter, with a $102 million investment in agricultural company Adecoagro highlighted, a commitment made by Paolo Ardoino in June to invest another $1 billion over the remainder of 2024.