Tether completes first Middle East crude oil transaction

Tether has completed its first financing transaction in the Middle East crude oil investment, expanding the crypto company’s initiatives beyond its flagship digital asset product.

The investment involves a major publicly traded oil company and a leading commodity trader and aims to facilitate the loading and transportation of more than 670,000 barrels of crude oil.

According to an announcement made on November 8, the investment arm of the Tether (USDT) stablecoin issuer completed the transaction in October 2024. The total value of Middle East crude oil is approximately $45 million, marking Tether’s first foray into the crude oil business in 2020. area.

It also highlights the crypto company’s growing interest in commodity trading around the world.

“This transaction marks the beginning of our work to support a broader range of products and sectors by promoting greater inclusivity and innovation in global finance,” said Paolo Ardoino, Chief Executive Officer of Tether.

Tether’s Trade Finance unit, which launched earlier this year, has seen significant growth as the company targets opportunities in the $10 trillion trade finance market.

Notably, while this new venture is part of Tether Investments’ broader portfolio, it is not linked to the platform’s USDT stablecoin reserves. Tether stated that this investment is part of its expansion strategy, which also includes the fields of artificial intelligence, education, renewable energy, Bitcoin (BTC) mining and telecommunications.

The company recently announced that its nine-month profit for 2024 reached $7.7 billion; The third quarter verification report also highlighted that US Treasury assets are over $102 billion.

While USDT circulation reached nearly $120 billion in the quarter, Tether said it held over $6 billion in extra reserves.