(Bloomberg) -- Stablecoin issuer Tether said it completed the funding of its first crude oil transaction in the Middle East as part of a plan to become a lender in commodities trading.
Completed in October, the transaction was to facilitate the loading and transporting of 670,000 barrels of Middle Eastern crude oil, valued at approximately $45 million, between a “publicly traded super-major oil company and a top-tier commodity trader,” the firm said in a statement on Friday. Tether didn’t immediately respond to a request for additional comment.
“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,” Tether Chief Executive Officer Paolo Ardoino, said in the statement. Tether is incorporated in the British Virgin Islands.
The closely-held firm issues digital tokens pegged to the dollar to facilitate trades in cryptocurrencies and make payments. It has become one of the most significant companies in the crypto sector, with over $105 billion in cash and cash equivalents in reserve to back its USDT token. Tether, which doesn’t release audited results, said last month that it had consolidated profit of $7.7 billion in the first nine months of the year.
The trade is the latest effort to explore lending opportunities beyond crypto. Tether has been in talk with several firms across the credit-hungry commodities trading sector, according to a report by Bloomberg News last month.
Tether earns a profit by keeping the interest payments from the US Treasuries and other short-term equivalents that it uses to hold the reserves backing its stablecoin.
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