Tether gets into agriculture with $100m investment in South America’s Adecoagro

USDT issuer Tether has taken a step into the agricultural sector with a $100 million investment in Adecoagro, a South American agricultural company.

This is its first venture into the agriculture and food industry, expanding its investment portfolio beyond its previous focus areas of technology and digital assets.

Tether acquires 9.8% of Adecoagro

In a recent filing, the company disclosed that it had acquired a 9.8% stake in Adecoagro, representing just over 10 million shares of its outstanding common stock. The filing also shows that Tether used funds from its earnings for the investment.

This represents a strategic shift for the blockchain company, which has previously focused on emerging technologies such as artificial intelligence, peer-to-peer platforms, Bitcoin mining and digital education initiatives.

Founded in 2002, Adecoagro is a key player in the Latin American agricultural sector. The company, based in Buenos Aires, Argentina, is known for its significant milk production capabilities, processing more than half a million liters per day at its plant.

Balanced cryptographic regulation

In another development, Tether Holdings CEO Paolo Ardoino recently appeared on Bloomberg TV’s “Bloomberg Markets” with Scarlet Fu to discuss the importance of the upcoming US election to the crypto industry and to highlight Tether’s latest product, Allow by Tether.

When asked if the company prioritizes reducing government regulation, as Trump proposes, or implementing safeguards for the crypto industry, as Kamala Harris suggests, he stressed the need for a balanced approach that includes reduced barriers and protections effective

He also noted that the “cryptocurrency industry in the US has not been very well supported until recently,” adding that the continent, traditionally a leader in technological innovation, has not fully embraced “powerful technology.”

Ardoino also mentioned Allow by Tether, a platform that enables the development of tethered assets that track the price of benchmark commodities by collateralizing them with liquid instruments.

One of the first tokens coming from the platform is a new gold-backed synthetic dollar, launched in June 2024. According to Ardoino, this product is designed to provide users with a stable and transparent alternative, responding to customer demand for assets which are less volatile than Bitcoin.

The company also recently announced the launch of a new stablecoin pegged to the United Arab Emirates dirham (AED) in collaboration with UAE-based partners.

Meanwhile, CoinGecko data shows that Tether’s USDT remains the largest stablecoin with a market cap of over $118 billion.

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