Stablecoin Diversifies Investment by Considering Entry into Commodity Trading, Tether Explores Opportunities

According to a report from The Block, the world's largest stablecoin issuer Tether is exploring new opportunities in traditional finance and commodities trading. CEO Paolo Ardoino stated that these activities will be separate from Tether's stablecoin business and will not impact it.

Tether Diversifying Stablecoin Returns Investment

Tether, originally known for its stablecoin, has firmly secured its leading position, accounting for nearly 70% of the stablecoin market. This year, Tether announced the establishment of four new business divisions to expand beyond stablecoins into the financial and technological ecosystem, providing a range of new decentralized infrastructure solutions to fulfill a broader mission. Among these, Tether Investments Limited is responsible for investing in sustainable energy, Bitcoin mining, data centers, AI infrastructure, and other companies, as indicated in Tether's audit report.

By the first half of 2024, Tether has injected $5.857 billion into Tether Investments Limited through its stablecoin issuance entities, Tether International Limited & Tether Limited.

According to previous reports, Paolo Ardoino, the CEO of Tether, mentioned in an interview with Bloomberg in June that the investment department under Tether is expected to invest over $1 billion in external funds in the next 12 months. Recent investments by Tether include $100 million in Bitdeer, $18.75 million in XREX Group, as well as data center operator Northern Data Group, and brain-computer interface (BCI) technology company Blackrock Neurotech.

With the Federal Reserve expected to cut interest rates soon, Tether's quarterly returns may decrease by $200 million. How will the leading stablecoin respond?

Tether Considering Entry into Commodities Business

Bloomberg also cited anonymous sources stating that Tether has "discussed dollar lending opportunities with several companies engaged in the commodities business."

In July, Tether spent $102 million to acquire a 9.8% stake in Adecoagro, with the stock code AGRO. Adecoagro is a holding company headquartered in Argentina with numerous businesses in South America, listed on the New York Stock Exchange. At the time, a spokesperson stated that Tether views land as an important asset class to complement its existing Bitcoin and gold investments. Land is inherently scarce, can provide long-term returns, and has historically been a safe haven during periods of geopolitical instability.

Land is also an important asset, as Tether invested $100 million in South American agricultural giant AGRO.

Tether Celebrates Tenth Anniversary

Last week, Tether released a documentary "Stability and Freedom Amidst Chaos" to celebrate the tenth anniversary of USDT. It emphasizes that USDT is a lifeline for millions of people, with a sacred mission to combat inflation and promote global financial freedom.