Tether explores lending options with commodities traders
Tether (CRYPTO:USDT), the issuer of the USDT stablecoin, is exploring lending opportunities for international commodities traders, particularly in developing economies.
With its deep financial resources and success in these markets, Tether could provide an alternative credit line for businesses facing challenges with traditional financing methods.
According to a Bloomberg report, Tether’s potential move into the commodities sector aims to address the growing demand for credit from traders.
Many global businesses, especially in countries facing sanctions or financial restrictions, struggle to secure the credit necessary for international trade.
For example, Russian metal producers have already turned to USDT to navigate sanctions and continue smooth transactions.
Tether’s substantial reserves and existing global connections position the stablecoin as a key player in facilitating these deals.
If successful, Tether could significantly benefit from partnering with commodities traders, as the sector is highly lucrative.
The stablecoin issuer has also been involved in real-world asset (RWA) markets, recently launching an asset backed by gold.
Expanding its reach to other commodities could further enhance Tether’s position in the financial market.
Despite the opportunities, Tether remains cautious due to potential risks, such as fraud and high margins in these ventures.
CEO Paolo Ardoino noted that the plans are still in early stages, and the company is carefully evaluating the possibilities.
At the time of writing, the Tether price was $0.9994.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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