Beyond Stablecoins: Tether Ventures into Oil and AI to Diversify Revenue Streams

Tether, the parent company of USDT, is positioning itself to become a major player in the commodity trading market, signaling a strategic shift beyond its established role as a stablecoin issuer. In October, Tether announced its entry into commodities with a $45 million oil deal, involving the transportation of 670,000 barrels of crude oil from the Middle East.

Not only is Tether the issuer of the world’s most widely used stablecoin, but it has also emerged as one of the most profitable crypto companies in recent years. According to its latest financial reports, Tether recorded a $2.5 billion net profit in Q3 of 2024, bringing its total net profit for the year to $7 billion.

Since Paolo Ardoino took over as CEO last year, Tether has taken bold steps to diversify its investments. In addition to its stablecoin operations, the company is now involved in artificial intelligence innovations and peer-to-peer communication systems. Recently, Tether launched “Tether Investments,” a new division that will oversee its debt financing offerings. Ardoino mentioned that one of the division’s first initiatives will be a short-term prepayment product designed for faster capital access.

Meanwhile, Ethereum’s price finally broke the $3,000 barrier after weeks of resistance. Following a dip to $2,375 just a day before the U.S. election, Ethereum rallied to reach $3,056 on Saturday. Many analysts believe that former President Donald Trump’s positive sentiment on cryptocurrency contributed to this market-wide price surge.

With changes in U.S. SEC leadership anticipated, many expect Ethereum to leverage its close ties with the Decentralized Finance (DeFi) sector for continued growth.