Tether Considers Lending to Commodity Traders, Report Says

The USDT issuer needs ways to utilize billions of dollars in profits, and commodity traders could benefit from the credit expansion.

Tether Holdings Ltd is considering lending to commodity trading firms, while the stablecoin issuer is looking to utilize billions of dollars in profits, according to an Oct. 14 report from Bloomberg.

Tether, which issues USDT, has discussed U.S. dollar-denominated lending opportunities with several commodity trading firms, Bloomberg reported, citing people familiar with the matter who asked not to be identified.

Tether did not immediately respond to Cointelegraph’s request for comment.

In those discussions, the stablecoin issuer also explored the potential for Tether

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to play a role in traditional commodity trading.

Commodity traders rely heavily on credit to finance international shipments of commodities such as oil and precious metals.

Companies specializing in commodity derivatives — such as futures or swaps — also rely on credit to finance trades. Futures tied to spot prices of cryptocurrencies are gaining popularity.