Tether has successfully financed its first oil transaction in the Middle East involving a major oil company and a senior trader, strengthening the role of USDT in global trade.
Role of USDT in Trade
With this first oil transaction in the Middle East, Tether aims to expand the use of USDT in global trade finance. The stablecoin issuer emphasized its commitment to the regional oil sector and the capacity of USDT to provide effective payment solutions in commerce.
Role of the Trade Finance Department
The Trade Finance department, established earlier this year, operates independently from Tether's stablecoin reserves. The department focuses on seizing opportunities in the 10 trillion dollar trade finance sector. This significant step allows Tether to explore more opportunities in commodity trading and other sectors, like agriculture. By utilizing USDT as a stable and efficient payment medium, the company has increased its capacity to manage trade agreements with blockchain-backed funds.
The Future of Stablecoins in the Middle East
Throughout 2024, Tether reinforced its financial strength by reporting a net profit of 2.5 billion dollars thanks to investments in assets like U.S. Treasury bonds and gold. Additionally, Tether launched a Dirham-pegged stablecoin on the TON Network. This new stablecoin intends to serve the Web3 and fintech ecosystem in the region alongside the integration of blockchain technology in the United Arab Emirates.
Tether’s first oil transaction in the Middle East strengthens the company's role in global trade finance and opens new prospects for USDT in commodity trading and other sectors. This development underscores Tether's determination to provide innovative solutions in financial technologies.
