Tether, the issuer of the world's largest stablecoin, USDT, is contemplating lending to companies in the commodity trading sector.
Prospects of Tether Lending
The Tether lending model could significantly impact a sector traditionally reliant on bank credit. According to Bloomberg, the company is considering offering US dollar loans to credit-hungry firms.
Appeal to Smaller Traders
Smaller traders struggling to secure traditional credit lines might find Tether's model appealing as it accelerates transactions. In a July financial statement, Tether reported a $5.2 billion profit for the first half of 2024.
Tether Representatives' Views
Tether's CEO, Paolo Ardoino, confirmed that the firm is exploring opportunities in commodities. While no specific investment plans were detailed, Ardoino highlighted the vast potential in the trade finance sector.
The Tether lending model could offer new opportunities for companies in the commodity sector, particularly those struggling to obtain traditional credits.