Tether, the world’s leading stablecoin issuer for USDT, is exploring the possibility of supplying billions of dollars in commodity loans to traders, a change that could significantly impact an industry that has traditionally relied upon bank credit. According to Bloomberg, Tether has been in negotiations with several commodity traders about opening US dollar loan opportunities and will use its stablecoin for general commodities. Tether’s executives also spoke at two large commodities industry events in Geneva and London in September about the trade finance opportunities. The expansion of Tether into commodities trading credit has been welcomed among some traders as it will not be limited by the same regulatory conditions as traditional loans, potentially speeding up payments and transactions, thus making them more efficient. Tether CEO, Paolo Ardoino did confirm to Bloomberg that such explorations are in progress, although the company is only in the early stages of developing its potential strategy. Despite the possible convenience, there are some risks associated. New investors often face serious challenges entering the field, with riskier traders pursuing returns in difficult parts of the world proving detrimental. There was also a series of high-profile fiascos, failures, fraudulent trades and scandals that reduced confidence in the industry. Additionally, there is also the risk of currency fluctuations as the Russia-Ukraine war resulted in a swing in commodity prices, and dependence on the US dollar for commodities trade may be problematic. At least two of Russia’s top metals producers have already incorporated stablecoins to settle global transactions, while Venezuela’s government-owned company, PDVSA, has increased the use of USDT to pay for oil shipment because of U.S. economic sanctions.
Related Posts
BlockBeats news, on October 16, according to official news, Tellor released the Tellor Layer white paper. Tellor Layer is an independent L1 blockchain built using the Cosmos SDK and aims…
Tesla’s recent Bitcoin transfer to unknown wallets fuels speculation of a potential sell-off. Musk’s public support for Trump adds intrigue to Tesla’s crypto moves. Elon Musk’s Tesla, one of the…
BlockBeats news, on October 16, according to official news, Tellor released the Tellor Layer white paper. Tellor Layer is an independent L1 blockchain built using the Cosmos SDK and aims…
BlockBeats reported that on October 16, The Block reported that Binance Labs invested in Lombard, a Bitcoin liquidity staking platform. Lombard’s total financing amount is currently around $17 million, an…
Ireland is set to draft new rules governing cryptocurrency, ahead of the European Union’s (EU) new package of laws aimed at cracking down on money laundering and terrorist financing. Finance…
According to BlockBeats news, on October 16, according to Lookonchain monitoring, the price of CHEEMS increased by approximately 70% after Cheems destroyed $3.6 million worth of LP tokens. In the…
In 2024, Milady NFT holders have accumulated significant gains through various airdrops, now valued at over $19,000 at their all-time highs (ATH). These airdrops include assets such as Omni, ZKSync,…
According to BlockBeats news, on October 16, according to Lookonchain monitoring, the price of CHEEMS increased by approximately 70% after Cheems destroyed $3.6 million worth of LP tokens. In the…
Crypto investors are over the moon as Bitcoin’s price is seemingly going toward a new record high after months of consolidation. Yet, there’s still one last resistance level that should…
Binance Tops Encryption App Download Rankings in September According to the latest data from CryptoRand, a platform for aggregating and analyzing encryption market data, Binance has emerged as the most…