Tether’s lending volume for commodity trading could grow to $3–5 billion by 2026, according to Tether CEO Paolo Ardoino in an interview with The Block.

The issuer of the USDT stablecoin uses this strategy to generate interest income by providing liquidity to an industry “constantly in need of it,” Ardoino explained.

He noted that Tether Investments, the company’s dedicated lending division, is already collaborating with some of the largest commodity trading firms.

“They are very keen on using USDT for trading because it enhances transparency and speed,” Ardoino added.

In October, Tether Investments financed a crude oil shipment worth $45 million in USDT. The division operates independently of Tether’s core business, drawing funding from the company’s earnings without tapping into its reserves.

By the third quarter of this year, Tether reported $7.7 billion in net profit since the start of 2024.

In June, Ardoino announced plans for Tether Investments to deploy over $1 billion in the next 12 months, prioritizing the development of alternative financial infrastructure in emerging markets.

When asked about Tether’s focus on commodities, Ardoino explained that many developing nations rely heavily on commodity sales as an economic driver. Given USDT’s popularity in such regions, the company sees value in facilitating trade.

Tether’s primary interest lies in financing deals involving gold, oil, and natural gas, according to the CEO.

“We are at the early stages of exploring this new opportunity,” he emphasized.

Reminder: Tether recently announced it would discontinue support for its euro-pegged stablecoin EURT. The company plans to focus its European Union activities on third-party project financing and promoting its real-world asset platform, Hadron.