The oil, produced in the Middle East, was valued at about $45 million.
Tether wants to support a broader range of commodities and industries.
The Tether company announced that its investment arm, Tether Trade Finance, funded the first crude oil transaction with the USD Tether (USDT) stablecoin. This operation involved the transportation of 670,000 barrels of oil, valued at approximately $45 million, and was completed in October of this year.
In a press release issued this Friday, the company explained that the transaction was carried out “between a large publicly traded oil company and a top-tier commodities trader.” Although Tether did not reveal the names of the companies involved.
Financing a physical crude oil transaction means that Tether provided the capital needed to purchase and transport the oil, using its stablecoin, USDT, instead of traditional fiat currencies. This allows a more efficient transaction, reducing operating costs and payment timeswhich is a key benefit over traditional financing methods, according to the company.
Tether Trade Finance, launched earlier this year, has scaled rapidly, according to the company itself, to support the trade finance industry. Tether’s mission is “to help drive positive change within the trade finance industry by providing flexible capital solutions to a wide range of businesses and driving efficiency in trade flows through its stablecoin, USDT,” they explained.
Paolo Ardoino, CEO of Tether, commented that Tether Investments’ financing of this crude oil transaction “underscores the commitment to reshaping the trade finance landscape.”
“With USDT, we are bringing efficiency and speed to markets that have historically relied on slower and more expensive payment structures. “This transaction marks the beginning as we seek to support a broader range of commodities and industries, fostering greater inclusion and innovation in global finance,” Ardoino added.
This USDT trade financing strategy not only reduces payment costs and times, but also takes advantage of high-level compliance and anti-money laundering (AML) standards, Due to the transparency of blockchains, indicated from the company.
Although this is the first transaction of its kind for Tether, it opens the door to future lending opportunities in sectors such as financial, technology, agricultural and asset-backed sectors. And, in addition to its foray into the oil market, Tether has been exploring other industries.
Recently, it was reported that the company invested 100 million dollars in shares of Adecoagro, an important milk producing company in Argentina, showing its interest in diversify your investments and support strategic sectors of the global economy, as reported by CriptoNoticias.
This move by Tether positions the stablecoin as a viable instrument for international trade in raw materialsinfluencing how global transactions for oil and other essential goods are managed.
