- Tether’s investment division has completed a multimillion-dollar crude oil transaction.
- The development marked the company’s first financing of a Middle Eastern oil deal.
- Tether said the transaction paved the way for using USDT in other financing areas.
Tether’s investment division has completed its first Middle Eastern crude oil transaction, financing a multimillion-dollar trade between a major publicly traded oil company and a “top-tier” commodity trader.
Tether’s trade finance business launched earlier this year and has quickly grown to target the $10 trillion trade finance industry with accessible capital solutions that streamline and modernize global trade. Tether has clarified that its investment division is separated from its stablecoin reserves, which CEO Paolo Ardoino recently revealed include 82,454 BTC, 48.3 tons of gold, and about $100 billion in US treasuries.
The Crude Oil Transaction
According to a press release on November 8, the USDT issuer’s investment arm financed a deal to facilitate the loading and transporting of 670,000 barrels of Middle Eastern crude oil in October. The physical crude oil was valued at approximately $45 million, underscoring Tether’s position as a financial powerhouse in its own right.
Sponsored
Ardoino lauded the transaction as a significant development that underscored Tether’s commitment to revolutionizing the trade finance landscape.
“With USD₮, we’re bringing efficiency and speed to markets that have historically relied on slower, more costly payment structures. This transaction marks the beginning, as we look to support a broader range of commodities and industries, fostering greater inclusivity and innovation in global finance,” Ardoino stated.
Per the statement, the investment arm uses the company’s “high profitability” to power its initiatives. Tether Holdings Limited (BVI) had a nine-month consolidated profit of $7.7 billion after reporting a profit of $2.5 billion in their Q3 2024 Attestation.
Tether said the crude oil transaction paved the way for the use of USDT in trade finance transactions in the financial, technology, agricultural, and asset-backed sectors.
Read what’s behind Tether’s $2.5 billion profit in Q3:
Tether Crushes Q3 Profit Records: What’s Behind the $2.5B Gains
Stay updated on the Deutsche Bundesbank’s move to join Project Guardian:
Deutsche Bundesbank Joins Project Guardian to Advance Asset Tokenization
