• Tether CEO Paolo Ardoino said the company is exploring opportunities in commodities trading and traditional finance (TradFi)
• Ardoino stated that any such activities would be separate from and have no impact on Tether’s stablecoin business
• Tether has previously discussed lending opportunities with firms in the commodities sector
Tether, the company behind the world’s largest stablecoin USDT, is exploring potential new business opportunities in commodities trading and traditional finance. This comes as Tether aims to expand beyond its core stablecoin offerings.
Tether CEO Confirms Commodities and TradFi Plans
In an interview on Monday, Tether CEO Paolo Ardoino confirmed the company is in the early stages of evaluating opportunities in commodity trading and traditional finance, also known as TradFi. Ardoino emphasized these new potential business lines would be completely separate from Tether’s stablecoin operations and would have no impact on its reserves.
Earlier on Monday, Bloomberg had reported Tether was looking into commodities trading and US dollar lending options with firms in the commodities sector, citing anonymous sources. Ardoino’s comments confirm Tether’s interest in these areas.
Separating Stablecoin and Investment Businesses
Ardoino stressed any new trading or lending activity would be conducted through Tether’s investment arm, separate from its stablecoin business. This allows Tether to maintain the necessary reserves to back its USDT tokens while also investing its excess capital.
Tether has taken this bifurcated approach before. In June 2024, it announced plans to deploy over $1 billion in investments over 12 months through its Tether Investments vehicle.
Why Tether Has Capital to Deploy
Tether has substantial funds to invest due to its highly profitable stablecoin business. In July 2024, Tether reported a record $52 billion in net profit for the first half of the year.
Tether has already begun making some private equity investments separate from stablecoins. For example, it invested $200 million into biotech firm Blackrock Neurotech earlier this year.
Looking Ahead
With its ample cash reserves, Tether is now looking to expand into new areas like commodities and TradFi. However, Tether emphasizes these new initiatives will
