Tether CEO says company exploring commodities trading and TradFi opportunities

by Yogita Khatri and RT Watson

Companies • October 14, 2024, 12:53PM EDT

Published 1 minute earlier on

The Block

Quick Take

Tether CEO Paolo Ardoino said his company is exploring commodities trading and TradFi opportunities.
Ardoino also said that such activity would be separate from, and have no impact on, Tether’s stablecoin business.

Tether 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.

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About Authors

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.