Tether, the leading stablecoin issuer, has revealed its plans to explore opportunities in commodity trading after securing massive profits, according to a Monday report by Bloomberg.Â
The flagship stablecoin issuer is mulling over lending to several firms in the above-mentioned sector. The USDT stablecoin, which boasts a market cap of nearly $120 billion, could be potentially integrated into traditional commodity trading.Â
Physical commodity traders typically rely on revolving credit facilities in order to be able to access capital in a reliable fashion. This helps them mitigate possible risks given that commodity prices tend to be quite volatile. Traders tend to rely on banks for securing necessary funding, but non-bank financial institutions have also emerged as increasingly important players.Â
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Tether reportedly wants to position itself as a more efficient lender since it would be able to offer faster payments due to a looser regulatory environment. Â Â
For now, the company is just “defining the strategy,” according to Tether CEO Paolo Ardoino. Â Â Â
