Tether, a stabelcoin pegged to the US dollar, has completed a milestone transaction through its investment division, Tether Trade Finance. This transaction, valued at approximately $45 million, involved the loading and transportation of 670,000 barrels of Middle Eastern crude oil in October 2024.
It marks Tether’s first USDT-backed crude oil deal in the region, highlighting the company’s growing influence in commodities trading.
Tether announced that its investment arm, Tether Trade Finance, has completed funding of the first USDT-based Middle Eastern crude oil transaction. The transaction, which will be completed in October 2024, aims to facilitate the loading and transportation of 670,000 barrels of…
— Wu Blockchain (@WuBlockchain) November 8, 2024
Supporting the $10 Trillion Finance Industry
Launched earlier this year, Tether Trade Finance aims to support the $10 trillion trade finance market by providing fast, flexible capital solutions.
With this new venture, the stablecoin leverages the strengths of USDT to streamline global trade, separating this initiative from its core stabelcoin reserves to support expansion in trade finance.
Accelerating Trade with Blockchain Efficiency
CEO Paolo Ardoino, emphasized the efficiency of using USDT in trade finance. “With USDT, we’re bringing efficiency and speed to markets that have historically relied on slower, more costly payment structures.” he stated.
This transaction represents a move toward modernizing trade finance by reducing costs, speeding up transactions and improving transparency through blockchain.
Building a Diverse Lending Portfolio
This deal is a first for the stablecoin in commodities but sets the stage for future lending opportunities across sectors like finance, technology, agriculture, and asset-backed markets.
Tether’s blockchain-driven approach aims to improve inclusivity and transparency in global finance, establishing a broader application for stablecoins beyond digital asset trading.
In addition to efficiency, the stabelcoin emphasizes strong compliance and AML (anti-money laundering) standards, supported by blockchain’s transparency. This focus on compliance indicates stablecoin’s commitment to secure and transparent trade finance solutions that meet top-tier industry standards.
Also Read: BlackRock’s Bitcoin ETF Reaches $33.17B, Surpasses Gold ETF
Credit: Source link
