- Tether is in early talks to offer loans to commodity trading companies, aiming to simplify financing
- CEO Paolo Ardoino highlights the potential of cryptocurrencies to revolutionize the commodity trading sector
- Tether seeks to provide smaller businesses with better access to credit, competing with industry giants like Trafigura
The issuer of the USDT stablecoin, Tether Holdings, is reportedly weighing the option of lending to commodity trading firms. For the time being, it is still in the “early stages.”
Tether Stablecoin Investment
In a statement to Bloomberg, Tether Chief Executive Officer Paolo Ardoino said that it has already started discussing dollar loan opportunities with a number of firms.
“We probably won’t disclose how much we are going to invest in commodity trading. We are still in the process of defining the strategy,” he said.
Ardoino noted that the opportunities in this market are enormous. The role of cryptocurrencies in commodity trading is yet to be seen; nevertheless, they have the potential to change the entire sector. Crypto can offer more transparency, security, and efficiency, the Tether chief executive said.
Large operators have very large credit networks that finance commodity trading, while smaller companies can hardly obtain financing. Giants like Trafigura Group operate on a huge credit network—$77 billion in credit lines from around 150 institutions.
According to insiders, Tether aims to significantly facilitate payments and transactions in the industry, considering that it would be more agile and much faster than any traditional financial institution, which is usually bound by more stringent regulatory requirements.
Conclusion
What are your thoughts on this potential move by Tether?
Does it have any chance of truly rewriting the rules in commodity trading? Personally, I find this exciting, but as yet, it’s hard to say how it will all unfold.
