Tether Explores Ventures in Commodities Trading and Traditional Finance (TradFi)

Tether, the company behind the world's largest stablecoin USDT, is exploring ventures in commodities trading and traditional finance (TradFi)

Cryptocurrency company Tether is exploring new ventures in commodities trading and traditional finance (TradFi), expanding its horizons beyond the digital asset realm.

According to a Bloomberg report, Tether is considering a range of opportunities, including commodity trading and lending to smaller firms in the sector. These companies often face challenges in securing traditional financing.

“The opportunities are massive,” Tether Chief Executive Paolo Ardoino said in an interview at the World Economic Forum in Davos, Switzerland, on Monday.

The company’s foray into commodities could open up new avenues for smaller traders, especially in markets like Russia and Venezuela, where Tether’s stablecoin USDT is already being used to facilitate cross-border transactions in oil and metals.

However, Ardoino clarified that Tether’s stablecoin operations and any new business lines will remain separate, and the company’s capital reserves will not be affected by these ventures.

“It will be a separate investment arm,” he said, adding that the stablecoin will remain central to Tether’s business.

In the first half of 2024, Tether’s stablecoin operations generated a record net profit of $5.2 billion, a significant increase from the $1.1 billion reported in the same period of 2023.

Earlier this year, Tether also made a $200 million investment in Blackrock Neurotech, a biotech company that aims to assist individuals with paralysis and neurological disorders.

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