Photo credit: Alesia Kozik/Pexels

Tether, the issuer of the stablecoin USDT, has successfully funded its first crude oil transaction in the Middle East through its newly launched Tether Trade Finance. 

According to an announcement from Tether, the transaction involved the purchase of a shipment of Iraqi crude oil by a Dubai-based entity, marking a significant milestone for the company as it expands into global trade finance.

This move underscores Tether’s growing role in international trade beyond digital assets, entering a market historically dominated by banks and established financial institutions. 

By leveraging USDT, Tether aims to facilitate faster, more transparent transactions in a sector often constrained by complex paperwork and lengthy settlement times. The funding of this crude oil purchase also reflects a shift towards digital assets as viable options for financing trade in the energy sector.

According to Paolo Ardoino, the CEO of Tether, stated: “‘Tether Investments’ financing of this significant crude oil transaction underscores our commitment to reshaping the trade finance landscape.”

“With USDT, we’re bringing efficiency and speed to markets that have historically relied on slower, more costly payment structures. This transaction marks the beginning, as we look to support a broader range of commodities and industries, fostering greater inclusivity and innovation in global finance.”

The Tether Trade Finance initiative is part of Tether’s broader strategy to enter the world of traditional finance, with the goal of expanding USDT’s use cases beyond cryptocurrency trading. 

As part of this effort, Tether has been exploring partnerships and opportunities within various sectors, including energy, commodities, and logistics, as the firm seeks to establish USDT as a functional financial tool across different industries.

This crude oil transaction in the Middle East signals a step forward for Tether in penetrating traditional trade markets and positions the company as a potential disruptor within the global trade finance industry.