According to a recent The Block report, Tether CEO Paolo Ardoino has shared that the company is exploring new ventures in traditional finance and commodities trading. He explained that Tether is in the early stages of investigating opportunities in commodity trading and TradeFi, noting that these activities will not affect the reserves of its stablecoins. Instead, they will be handled through the Tether Investment vehicle, which operates separately.

In addition to being the issuer of the world’s largest stablecoin, Tether has expanded into new areas, including launching an investment division. In June, Ardoino mentioned plans to invest over $1 billion within a year. Bloomberg reported that Tether is also looking into U.S. dollar lending opportunities in the commodities sector, citing unnamed sources.

Tether has demonstrated its capacity to deploy capital, having reported a record $5.2 billion profit for the first half of 2024 in its July quarterly attestation. Earlier this year, Tether invested $200 million in Blackrock Neurotech, a biotech firm focused on aiding people with paralysis and neurological disorders. Ardoino emphasized that such investments are distinct from the stablecoin business, which requires Tether to maintain substantial capital reserves.

Resources:

The Block