Cryptocurrency NewsTether Breaks Ground with First Crude Oil Transaction in Middle East

Tether Breaks Ground with First Crude Oil Transaction in Middle East

Tether has announced the successful completion of its inaugural investment in Middle Eastern crude oil, signaling the company’s expansion beyond its digital assets portfolio. This venture involves a partnership with a publicly listed oil major and a leading commodity trading firm to facilitate the transport of approximately 670,000 barrels of crude oil, valued at around $45 million.

According to Tether’s Nov. 8 announcement, the transaction was finalized in October 2024 under the company’s investment arm, Tether Investments. This entry into the oil sector marks a strategic diversification for the stablecoin issuer, underscoring its commitment to broader commodity markets worldwide.

“This transaction marks the beginning, as we look to support a broader range of commodities and industries, fostering greater inclusivity and innovation in global finance,” said Paolo Ardoino, CEO of Tether.

Since launching its Trade Finance unit earlier this year, Tether has targeted high-value opportunities in the global trade finance market, estimated at $10 trillion. Tether emphasized that while this investment reflects its expanding portfolio, it remains separate from the USDT stablecoin reserves. This latest move aligns with Tether’s growth strategy, which also spans investments in artificial intelligence, education, renewable energy, Bitcoin mining, and telecommunications.

In its recent financial disclosure, Tether reported impressive gains, achieving $7.7 billion in profits over the first nine months of 2024. Its Q3 report highlighted over $102 billion in U.S. Treasury holdings. During this period, USDT’s circulation reached nearly $120 billion, with the company holding over $6 billion in additional reserves to support its commitments.

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