The oil business has a new player: Tether.
What’s happening:
- Tether has officially helped finance and facilitate an oil purchase between two companies for the first time ever
By the numbers:
- The oil purchase was for approximately $45M USD and saw 670,000 barrels of oil be exchanged
Why it matters:
- The deal was done through Tether’s newly launched venture Tether Finance which is focused on facilitating trade between global companies in a streamlined way by providing accessible capital and leveraging stablecoin technology
Going deeper:
- Tether has been on a relentless growth trajectory, previously breaking new records for total profitability
- Stablecoins have also been seeing a surge in investment from large companies lately, with Stripe recently paying out a billion dollars to acquire stablecoin company Bridge and Paxos rolling out a new global stablecoin network in partnership with Galaxy Digital (TSX: GLXY) and Robinhood (NASDAQ: HOOD)
The intrigue:
- While the entities were not named, Tether has publicly stated that the trade was between a major publicly listed oil company and a large commodities trading company