Tether Invests $100M in Adecoagro, Marking Its First Move into Agriculture Sector

Tether issuer Tether has made a move into the agriculture sector with a $100 million investment in Adecoagro, a South American agricultural firm.

Cryptocurrency issuer Tether has made its first foray into the agriculture sector with a $100 million investment in South American agricultural firm Adecoagro.

According to a recent SEC filing, Tether has acquired a 9.8% stake in Adecoagro, amounting to slightly more than 10 million shares of its outstanding common stock. The filing also shows that Tether used funds from its revenues for the investment.

This marks a significant shift in strategy for the blockchain company, which has largely focused on emerging technologies such as artificial intelligence, peer-to-peer platforms, Bitcoin mining, and digital education initiatives to date.

Founded in 2002, Adecoagro is a major player in the Latin American agriculture sector. Headquartered in Buenos Aires, Argentina, the company boasts substantial milk production capabilities, processing over half a million liters per day at its plant.

In related news, Paolo Ardoino, CEO of Tether Holdings, recently appeared on Bloomberg TV’s “Bloomberg Markets” with Scarlet Fu to discuss the importance of the upcoming U.S. elections for the crypto industry and to highlight Tether’s latest product, Allow by Tether.

When asked whether the company favors reducing government regulation, as Trump proposes, or implementing safeguards for the crypto industry, as Kamala Harris suggests, Ardoino emphasized the need for a balanced approach that incorporates both reduced barriers and effective protections.

He also noted that the “cryptocurrency industry in the U.S. has not been very well supported until recently,” adding that the continent, traditionally a leader in technological innovation, has not fully embraced the ‘powerful technology.’

Ardoino also briefly touched upon Allow by Tether, a platform that enables the creation of tethered assets that track the price of reference commodities by over-collateralizing them with liquid instruments.

One of the first tokens to be launched on the platform is a new synthetic dollar backed by gold, which was introduced in June 2024. According to Ardoino, this product aims to offer users a stable and transparent alternative, catering to customer demand for assets that are less volatile than Bitcoin.

The company also recently announced the launch of a new stablecoin pegged to the United Arab Emirates dirham (AED) in collaboration with partners based in the UAE.

Meanwhile, CoinGecko data shows that Tether’s USDT remains the largest stablecoin with a market capitalization of over $118 billion.

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