Tether Leverages USDT to Finance Physical Crude Oil Trade in the Middle East
Stablecoin issuer Tether announced on November 8th that it has funded a physical crude oil transaction in the Middle East using its USD-pegged stablecoin, USDT (Tether).
According to the announcement, this transaction facilitated the loading and transportation of 670,000 barrels (approximately ¥6.9 billion or $69 million) of Middle Eastern crude oil between a major publicly traded oil company and a top-tier commodity trader. While the oil company’s name remains undisclosed, the deal was finalized in October 2023. Notably, this marks Tether Investments’ first foray into crude oil trade financing in the region.
The use of USDT in trade finance reportedly reduces costs and accelerates payment processing compared to traditional investment methods.
Key Details:
- Transaction Volume: 670,000 barrels of crude oil (~$69 million).
- Parties Involved: Publicly listed oil company + leading commodity trader.
- Completion Date: October 2023.
This initiative falls under Tether Investments, a division launched earlier this year. Operating independently from Tether’s stablecoin reserves, the division has invested $7.7 billion (¥1.18 trillion) as of Q3 2023, targeting sectors like:
- Renewable energy
- Bitcoin (BTC) mining
- Artificial intelligence (AI)
- Telecommunications
- Education
Future expansions may include investments in finance, technology, agriculture, and asset-backed securities.
👉 Discover how stablecoins are reshaping global trade finance
FAQs
1. How does USDT improve trade finance efficiency?
USDT streamlines cross-border payments by eliminating intermediaries, reducing transaction times, and lowering fees compared to traditional banking systems.
2. Why did Tether choose Middle East crude oil for its first trade finance deal?
The Middle East dominates global crude oil supply, making it a strategic entry point for testing USDT’s scalability in commodity markets.
3. Is Tether’s investment arm regulated?
Tether Investments operates separately from USDT reserves. While specific regulations vary by region, the division adheres to compliance frameworks for institutional investments.
👉 Explore Tether’s latest investment portfolio updates
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- USDT (Tether)
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- Middle East crude oil
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- Tether Investments
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