Tether Expands Its Role in Global Trade Finance, Completes Funding of First Middle Eastern Crude Oil Transaction in $USDT

Tether, the largest company in the digital asset industry today announced that its Investment division has financed a physical crude oil transaction in the Middle East.

Stablecoin issuer Tether has stepped into the global trade sector by financing a high-profile crude oil transaction in October 2024 through its investment division, marking Tether’s first transaction in the Middle East.

The deal included the loading and shipment of 670,000 barrels of crude oil, valued at roughly $45 million, between a publicly traded oil super-major and a top-tier commodity trader. The transaction was reportedly settled using Tether’s stablecoin, USDT.

Tether’s Trade Finance was launched earlier this year to tap into the $10 trillion trade finance industry. Tether’s Trade Finance arm operates separately from its USD₮ reserves that allow Tether to support diverse industries, including oil and gas, without compromising the stability of USDT.

Tether’s use of USDT in trade finance introduces a streamlined approach to cross-border transactions. Unlike traditional methods, which often involve multiple intermediaries and slower payment systems, USDT transactions are faster and more cost-effective.

Moreover, Tether enforces rigorous compliance and Anti-Money Laundering (AML) standards, making USDT a reliable choice for large-scale trade deals. This efficient payment mechanism offers businesses significant savings and faster cash flows, which are crucial for industries that operate on tight financial cycles, such as commodities and agriculture.

This crude oil transaction expands Tether’s presence in the trade finance sector and opens up possibilities for additional lending opportunities. Tether has announced plans to support a wider array of sectors, including technology, agriculture, and other asset-backed industries.

By expanding its financial services, Tether aims to foster inclusivity and innovation within global trade. Moreover, the transparency provided by blockchain networks instills confidence in USDT transactions, ensuring a secure and compliant framework for international trade.

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