Tether Holdings Ltd is actively exploring lending opportunities within the commodities trading sector, aiming to deploy billions in profits.

In addition to lending, Tether is considering integrating its stablecoin, USDT, into mainstream commodities trades.

The commodities market presents lucrative prospects, especially given the rising correlation between gold and cryptocurrency ETF markets.

As of mid-October 2024, USDT boasts a market capitalization of approximately $120 billion.

Tether reported a record profit of $5.2 billion in the first half of 2024 and holds substantial US government bonds.

The company has been reinvesting its profits across various sectors, including sustainable energy and Bitcoin mining.

CEO Paolo Ardoino indicated that Tether's strategy for entering the commodities trading space is still in its early stages, with specific plans yet to be disclosed.

Historically, Tether has engaged in commodity trading, notably with Russian metals and Venezuelan oil.

However, Tether's foray into commodities trading could involve increased risks, such as potential fraud and the necessity for higher profit margins.

Many commodities producers currently face challenges due to stringent credit requirements, which Tether may help alleviate.

Discussions are underway regarding United States dollar-denominated lending options with various commodity trading firms.

Tether has already launched a real-world asset based on gold and may consider expanding into other commodities in the future.