Tether to expand funding to trading firms in oil and agricultural products…"Will greatly increase loan size"

The world's largest stablecoin issuer Tether is reported to be planning a significant expansion of its lending business targeting major commodity trading firms dealing in crude oil, cotton, and wheat.

On the 14th (local time), Bloomberg reported that Paolo Ardoino, Tether's Chief Executive Officer (CEO), said, "Tether has so far provided about $1.5 billion in loans to commodity trading firms," and added, "As demand for commodity trade financing grows, we will aggressively increase the size of loans going forward." He explained, "USDT use is rapidly spreading in major export regions such as Latin America, so trade finance based on digital payments is becoming a more suitable structure."

Earlier, Tether had provided not only USDT but also cash loans in U.S. dollars. Although its market presence has not been large compared with banks so far, it is evaluated to be securing competitiveness based on interest income generated from reserves of about $200 billion.

Tether's commodity trade finance business is handled by its trade finance division launched last year. This division operates separately from the stablecoin reserves, and Tether has been exploring opportunities for U.S. dollar–based lending services since last year.

Meanwhile, the stablecoin market continues to grow. USDT circulation has increased to about $184 billion, and with the U.S. passing a stablecoin regulatory bill in July, its use in global payments and remittances is widening. CEO Ardoino recently stated, "Net profit in 2025 will reach $15 billion."