Tether (USDT), a stablecoin, is exploring lending opportunities to international commodities traders, particularly in developing markets. This move could leverage Tether’s existing connections and high profits for lucrative opportunities.
As competition in the stablecoin market intensifies, Tether could profit significantly by providing credit to businesses that traditionally rely on financial institutions, especially in light of rising US sanctions.
The stablecoin’s global connections are advantageous since credit-starved business ventures in developing economies may need alternatives to traditional finance solutions. Tether, which has been successful in these regions, may act as a direct line of credit.
Commodities trading can be exceptionally profitable, and Tether has already engaged in this area with real-world assets based on gold and other commodities. This diversification strategy highlights its strengths and opportunities in profitable markets.
There are challenges associated with this plan, including potential fraud in commodity trading. Higher profit margins in these sectors carry increased risks. However, Tether believes these opportunities could be massive in the future.
The plan's specifics remain undisclosed as authorities believe they are still in the early stages of exploration and strategy definition.
