Tether, the company that runs the world’s largest stablecoin with a market capitalization of almost $120 billion, is exploring extending credit to commodities trading firms. That’s according to a Bloomberg report, citing sources. CEO Paolo Ardoino confirmed it’s exploring the sector but is in the early stages.
While the largest traders such as Trafigura and Mercuria have major lines of credits from banks, smaller traders sometimes struggle to fund commodities shipments. Those smaller firms are also riskier.
According to the Bloomberg report, Tether is also exploring the use of its stablecoin in trade payments. In July, a Chinese firm boasted using Tether to skirt sanctions for trade with Russia.
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