Stablecoin income diversification investment, Tether considers entering commodity trading

According to The Block, the world's largest stablecoin issuer Tether is considering new opportunities in traditional finance and commodities trading, with CEO Paolo Ardoino stating that such activities will be independent of Tether's stablecoin business and will not impact it.

Tether to Diversify Stablecoin Earnings Through Investments

Tether, which started with stablecoins and has become the market leader, accounting for nearly 70% of the stablecoin market, announced the establishment of four new business divisions this year to move beyond stablecoins and into the broader financial and technological ecosystem, providing a range of new decentralized infrastructure solutions to fulfill a broader mission. Tether Investments Limited, a subsidiary responsible for investing in sustainable energy, Bitcoin mining, data centers, and AI infrastructure, has been separately identified in Tether's attestation reports.

In the first half of 2024 alone, Tether International Limited & Tether Limited, the issuers of Tether's stablecoins, have invested $5.857 billion into Tether Investments Limited.

According to previous reports, Tether CEO Paolo Ardoino mentioned in a June interview with Bloomberg that Tether's investment division plans to invest over $1 billion externally in the next 12 months. Tether's recent investments include $100 million in Bitfury, $18.75 million in XREX Group, as well as investments in data center operator Northern Data Group and brain-computer interface (BCI) technology company Blackrock Neurotech.

(With the Fed rate cut looming, Tether's quarterly earnings could drop by $200 million, how will the stablecoin leader respond?)

Tether Considers Entering Commodities Business

Bloomberg also cited anonymous sources saying that Tether has "discussed US dollar lending opportunities with several companies involved in the commodities business".

In July, Tether spent $102 million to acquire a 9.8% stake in Adecoagro (ticker: AGRO), a holding company headquartered in Argentina with extensive operations in South America, listed on the New York Stock Exchange. At the time, its spokesperson said Tether views land as an important asset class to complement its existing Bitcoin and gold investments. Land is inherently scarce and can provide long-term returns, and has historically been a safe haven during periods of geopolitical instability.

(Land is also an important asset, Tether spends $100 million to acquire a 9.8% stake in South American agricultural giant AGRO)

Tether Celebrates 10th Anniversary

Last week, Tether released a documentary film Stability and Freedom in Chaos to celebrate the 10th anniversary of USDT. It emphasizes that USDT is a lifeline for millions, with a sacred mission to combat inflation and promote global financial freedom.