Stablecoin Giant Tether wants to use billions in profits for new lending: report

Stablecoin issuer Tether Holdings Ltd is reportedly contemplating venturing into commodity commerce financing amid a rising money pile.

In response to a Bloomberg reportTether Holdings, which generated $5.2 billion in internet revenue within the first half of 2024, is exploring the potential for lending to commodity buying and selling corporations.

Citing “individuals accustomed to the matter,” the report says Tether has initiated discussions with a number of commodity buying and selling companies with the intention of providing U.S. greenback loans to the sector.

Tether CEO Paolo Ardoino tells Bloomberg that he believes the alternatives within the commodity buying and selling sector will likely be “big sooner or later.”

“We’re in all probability not going to reveal how a lot we plan to put money into commodity buying and selling. We’re nonetheless figuring out the technique. We’re desirous about exploring totally different commodity buying and selling alternatives.”

Bloomberg’s nameless sources say Tether has additionally been speaking to commodity buying and selling corporations about methods to make use of its flagship stablecoin, USDT, to facilitate their operations.

Whereas the massive commodity buying and selling corporations have easy accessibility to credit score, smaller gamers are deprived on this space, in keeping with Bloomberg. The report provides that Tether might probably be a lovely supply of credit score for commodity buying and selling corporations as a result of its financing might not be topic to the identical regulatory hurdles as conventional banks.

USDT at present has a market cap of over $119 billion, whereas its closest competitor, Circle’s USDC, has a market cap of just below $35 billion.

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