Étienne Girard
Tether CEO Paolo Ardoino announced that the company is exploring new ventures in traditional finance and commodities trading.
“Tether is in the initial stages of investigating various opportunities in commodity trading and traditional finance,” he stated in an interview with PRIME on Monday. “This new business line will not affect the reserves of our stablecoins, as it will be managed through a separate Tether investment vehicle.”
In addition to being the creator of the largest stablecoin by market capitalization, Tether has recently established distinct divisions, including an investment arm. In June, Ardoino indicated that the company plans to invest over $1 billion within a year.
Bloomberg reported on Monday that Tether is looking into possibilities in commodities trading. The report also mentioned that the company has been in talks about U.S. dollar lending options with various firms involved in the commodities sector, according to unnamed sources.
Whether through lending, which Tether has previously engaged in, or investing, the stablecoin issuer seems to have capital available for deployment. Tether’s latest quarterly report revealed a record net profit of $5.2 billion for the first half of 2024.
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Earlier this year, Tether announced a $200 million investment in Blackrock Neurotech, a biotech firm focused on assisting individuals with paralysis, lost functionality, and neurological disorders. Ardoino emphasized that Tether’s investment activities are distinct from its stablecoin operations, which necessitate maintaining substantial capital reserves.
