Tether Allocates $1.5B to Commodities Lending as It Plans Major Expansion
Tether, the issuer of the world’s largest stablecoin USDT, has put about $1.5 billion into commodities lending and announced plans to expand further in that market. The allocation marks a strategic shift toward real-world asset financing, positioning the firm to tap demand for short-term commodity finance and potentially higher yields compared with some traditional crypto holdings. The development matters because it changes how a major stablecoin issuer is managing capital and seeking revenue diversification. While the move could broaden Tether’s asset mix and support new revenue streams, it may also draw regulatory and market scrutiny around credit, counterparty and liquidity risk. Market participants and USDT holders will be watching disclosures and operational details as Tether scales this business to assess potential impacts on reserve composition and stablecoin stability.