Tether, a stablecoin pegged to the US dollar, has completed its first USDT-backed crude oil deal in the Middle East. The transaction, valued at approximately $45 million, involved the loading and transportation of 670,000 barrels of crude oil in October 2024. This marks Tether’s entry into commodities trading and highlights the company’s growing influence in the market.
Tether’s investment arm, Tether Trade Finance, aims to support the $10 trillion trade finance market by providing fast, flexible capital solutions. According to the company, the use of USDT in trade finance brings efficiency and speed to markets that have historically relied on slower, more costly payment structures.
This transaction represents a move toward modernizing trade finance by reducing costs, speeding up transactions, and improving transparency through blockchain technology. Tether’s blockchain-driven approach aims to improve inclusivity and transparency in global finance, establishing a broader application for stablecoins beyond digital asset trading.
Additionally, Tether emphasizes strong compliance and AML (anti-money laundering) standards, supported by blockchain’s transparency. This focus on compliance indicates the stablecoin’s commitment to secure and transparent trade finance solutions that meet top-tier industry standards.
