Tether, the issuer of the USDT #stablecoin , has begun exploring opportunities to lend to commodity trading firms to effectively deploy its excess operating profits.
According to sources familiar with the situation, meetings between Tether representatives and #traders and producers in the commodities industry have discussed arranging credit lines in #USDT。 stablecoins.
Tether's proposal is expected to be particularly attractive in that lending terms would not be constrained by regulatory requirements like traditional lenders. In addition, lending in USDT will provide meaningful access to the financial borrowing market for minor commodity market participants and sub-sanctioned companies.
In comments to #Bloomberg , a Tether spokesperson confirmed that the company is exploring commodity lending opportunities, but declined to divulge a list of interested companies and the potential size of the loan portfolio.
“We will not disclose where or how much we intend to invest in the commodities trading industries. We are still determining our strategy. The company is interested in exploring commodity trading lending opportunities and sees great promise in this,” Tether said.
Earlier, Cyber Capital founder Justin Bons said that Tether's 75% dominance in the stablecoin market has heightened concerns among crypto industry participants about its possible negative impact on the industry. Bons called Tether “one of the biggest existential threats to the entire crypto industry.”