Tether May Lend to Commodities Trading Firms

Reading Time: < 1 minute

According to an article by Bloomberg on October 14, Tether Holdings Ltd is planning to lend to commodities trading companies to utilize their billions of dollars in profits.

The stablecoin issuer, known for its USDt token, is said to have engaged in talks with various commodity trading firms regarding potential USD-denominated lending opportunities, as reported by anonymous sources.

These discussions also reportedly touched upon the possibility of Tether having a role in traditional commodity trades.

Since commodity traders often rely on credit to fund global shipments of commodities like oil and precious metals, Tether’s involvement could have a significant impact.

Additionally, as the popularity of futures connected to cryptocurrency prices grows, trading firms that specialize in commodities derivatives also depend on credit for financing their deals.