Tether’s investment division successfully funded its first crude oil transaction in the Middle East. The transaction, involving a leading publicly traded oil super-major and a top-tier commodity trader, facilitated the transport of 670,000 barrels of Middle Eastern crude oil, valued at approximately $45 million.
Tether Expands USDT Adoption with First Middle East Crude Oil Deal
In a recent announcement, Tether shared that its Trade Finance unit had completed its inaugural crude oil transaction in the Middle East, a venture valued at $45 million. This move marks the stablecoin issuer’s first foray into the regional crude oil sector, highlighting its commitment to expanding USDT in global trade finance.
More so, the transaction facilitated the loading and transport of 670,000 barrels of crude oil. This indicates Tether’s growing role in commodities leveraging USDT in industries for efficient payment solutions.
Following the development, Tether CEO commented,
“With USDT, we’re bringing efficiency and speed to markets that have historically relied on slower, more costly payment structures. This transaction marks the beginning, as we look to support a broader range of commodities and industries.”
The stablecoin issuer Trade Finance division, launched earlier this year, operates independently of Tether’s stablecoin reserves. It focuses on funding opportunities within the $10 trillion trade finance sector.
This milestone positions Tether to explore further opportunities in commodities trading and other sectors, such as finance, agriculture, and asset-backed lending, promoting the adoption of its stablecoin.
The company’s ability to manage trade deals via blockchain-backed funds further solidifies his position, utilizing USDT as a stable and efficient payment tool.
Strong Q3 Growth Amid Expanding Regional Reach
In its Q3 2024 report, the company disclosed a net profit of $2.5 billion, reinforcing its robust financial standing. The company has posted profits across the year due to investments in assets like U.S. Treasuries and gold. This profitability has enabled the stablecoin provider to expand its investment arm and support large-scale transactions.
Additionally, last week, the stablecoin company launched a Dirham-pegged USDT on the TON Network to expand its footprint in the Middle East. This new stablecoin will serve the region’s growing Web3 and financial technology ecosystem, with increased adoption expected as businesses in the United Arab Emirates continue integrating blockchain technology.
Recently, Tether’s CEO Paolo Ardoino clarified a 2 billion USDT minting on the Ethereum blockchain, part of its liquidity management strategy. This move, executed through a chain swap, involved redistributing USDT from various blockchains to Ethereum to optimize liquidity.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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