Tether CEO says company exploring commodities trading and TradFi opportunities

Tether USDT +0.087% CEO Paolo Ardoino said his company is mulling new opportunities in the world of traditional finance and commodities trading. 

"Tether is in early exploration of different commodity trading and TradeFi opportunities," he told The Block on Monday. "This business line won’t have impact on stablecoins’ reserves, since it will be performed via the Tether Investment vehicle that is separated."

Aside from Tether's work as the developer of the world's largest stablecoin by market cap, the company recently created separate divisions , including an investment arm. Back in June, Ardoino said in an interview  that the company would invest more than $1 billion over a 12-month period.

Bloomberg was the first to report on Monday that Tether is examining opportunities within commodities trading. It also said that Tether has "discussed U.S. dollar lending opportunities with several firms" working in commodities, citing anonymous sources.

Whether it be lending money — which Tether has done in the past — or investing, the stablecoin issuer appears to have capital to deploy. In July, Tether's latest quarterly attestation showed that the company had generated a record net profit of $5.2 billion for the first half of 2024.

Tether said in April it had invested $200 million in Blackrock Neurotech, a biotech company that aims to help people afflicted with paralysis, lost function, and neurological disorders. At the time, Ardoino reiterated that Tether's investments are separate from its stablecoin business, which requires the company to hold massive capital reserves.