- Utilizing Digital Currency for Trade Finance, Tether Aims to Reduce Operational Costs and Payment Delays in Transactions.
- Tether’s USDT Enables Enhanced Transparency and Compliance in Trade, Aligning With Anti-Money Laundering and Regulatory Standards.
Tether, the entity behind the USD Tether (USDT) stablecoin, has completed its inaugural transaction for crude oil using USDT. This deal involved the transfer of 670,000 barrels of crude oil, valued at roughly $45 million, completed in October.
The transaction was between a major publicly traded oil company and a prominent commodity trader, though the names of these companies were not disclosed by Tether.
By utilizing USDT instead of traditional fiat currencies, Tether provided the necessary funds for purchasing and transporting the oil. This method reduces operational costs and shortens payment durations, enhancing transaction efficiency.
Launched at the start of this year, Tether Trade Finance aims to revolutionize the trade financing sector by providing flexible capital solutions to a broad range of businesses and improving the efficiency of trade flows through the use of USDT.
According to Paolo Ardoino, CEO of Tether, this transaction demonstrates Tether’s commitment to transforming the trade finance market by introducing more efficient and quicker payment methods compared to traditional models.
The use of USDT in this transaction underscores its potential to streamline payment processes in trade finance, offering quicker transaction times and greater transparency, aligning with stringent compliance and anti-money laundering standards thanks to the transparency afforded by blockchain technology.
This initial transaction is part of Tether’s broader strategy to extend its financial support to a wider array of commodities and industries, reflecting a significant shift towards integrating digital currency technologies in commercial financing.
Tether’s venture into crude oil transaction financing is anticipated to pave the way for more such endeavors across diverse sectors such as finance, technology, agriculture, and asset-backed industries. Tether continues to explore opportunities across various markets, aiming to foster broader adoption and innovation in global finance.
USDT is one of the most traded cryptocurrencies globally, as it is widely used as a safe haven during periods of high market volatility.
The post Tether Completes First Crude Oil Transaction Using USDT, Valued at $45 Million, Facilitating Efficient Payment Processing appeared first on ETHNews.
