By 2026, Tether’s allocation for commodity trade financing could grow to $3-5 billion, according to the company’s CEO, Paolo Ardoino, in an interview with The Block.
He stated that this activity allows the USDT stablecoin issuer to earn interest income by providing liquidity to a sector that “always needs it.”
Ardoino noted that Tether Investments is already collaborating with several major commodity traders.
“They are very interested in using USDT for trading as it enhances transparency and speed,” he added.
In October, Tether Investments financed a crude oil supply deal in USDT worth $45 million.
The division operates separately from the company’s core business. Its activities are funded from the stablecoin issuer’s income, without using Tether’s reserves.
For the third quarter, the company reported a net profit of $7.7 billion for the year to date.
In June, Ardoino announced that Tether Investments plans to invest over $1 billion over the next 12 months. One of the priorities is developing alternative financial infrastructure in emerging markets.
When asked about Tether’s interest in the commodities sector, Ardoino responded that for many third-world countries, their sale is a major economic driver. Since USDT is particularly popular among users in emerging markets, the company saw value in facilitating such trade.
Tether is primarily interested in financing deals involving gold, oil, and natural gas, the executive noted.
“We are at the early stage of this new opportunity,” the company head emphasized.
As reported, Tether will cease support for the euro-pegged stablecoin EURT. In the EU, the firm will focus on financing third-party projects and promoting its RWA platform, Hadron.