Tether has executed a $45 million crude oil trade using USDT, marking a pivotal step in global trade finance. The transaction underlines Tether’s drive to integrate digital currency solutions into traditional finance transactions, showcasing blockchain’s efficiency and security benefits.
Transforming Global Trade Finance
Tether’s involvement in the global trade finance sector signifies a shift toward modernizing current trade systems, which are slow and costly. The firm introduces blockchain-based processes that enhance speed and security while reducing dependency on conventional banking channels.
Paolo Ardoino, Tether’s CEO, pointed out that the firm’s initiative aims to “increase efficiency and speed” in markets reliant on intricate financial structures through Tether Trade Finance. Thus, the company positions itself to manage diverse commodity trades, promoting blockchain technology’s use in global commerce.
Impact On the Middle East’s Finance Sector
The stablecoin issuer is also expanding its footprint in the Middle East’s finance sector. Recently, it invested $3 million in Kem, a financial management platform that fosters regional financial inclusion. This move aligns with Tether’s vision of integrating USDT into regular economic activities.
In addition to these efforts, the stablecoin issuer launched a dirham-pegged stablecoin on the TON blockchain, reinforcing its commitment to supporting the UAE’s digital finance landscape. This stablecoin adheres to the region’s regulatory standards, promoting safe and compliant digital currency use.
Canadian Police Praise Tether
Meanwhile, the Ontario Provincial Police (OPP) has recognized Tether’s effective assistance in recovering stolen digital assets. The stablecoin issuer aided the OPP’s Cyber Investigations Team by freezing approximately 10,000 Canadian dollars ($7,186) worth of USDT taken from an individual.
Thanks to Tether’s support, the stolen funds were promptly returned to their rightful owner. Detective Staff Sergeant Addison Hunter noted that the voluntary support from Tether International Ltd. played a crucial role in successfully seizing the stolen digital assets, facilitating their prompt recovery and return to the victim.
Tether’s Chief Executive Officer Paolo Ardoino reiterated the company’s commitment to working with global authorities to fight cybercrime and aid victims. Thus, law enforcement agents can hold wrongdoers accountable for their actions, safeguarding those affected.
Consistent Support for Law Enforcement
This latest move aligns with Tether’s history of supporting investigations and freezing digital assets linked to criminal activities. In July 2020, Tether blocklisted 39 Ethereum network addresses, collectively containing approximately $46 million in USDT.
This action prevented the potential illegal use of the funds. The company’s track record includes its involvement in the aftermath of the September 2020 KuCoin hack, which saw hackers drain about $200 million from the exchange.
Moreover, the firm worked with Bitfinex, a popular crypto exchange, to freeze over $33 million in USDT involved in that breach. For similar reasons, Tether froze $150 million in USDT in January 2022.
The USDT issuer blocked 312 different wallet addresses over the course of that year to aid authorities and prevent the misuse of the stablecoin.
Addressing Regulatory Pressures
Tether’s cooperative stance comes amid regulatory scrutiny and calls from government bodies for enhanced measures against financial crimes involving digital currencies. In December 2023, the stablecoin issuer implemented a policy to freeze wallets linked to individuals or entities sanctioned by the US Office of Foreign Assets Control (OFAC).
This measure followed pressure from US lawmakers urging the firm to enforce sanctions and curb concerns over the stablecoin’s misuse for financing unlawful activities, including terrorist operations. Accordingly, the firm maintains relationships with agencies globally, demonstrating its stance against cybercriminals and its commitment to protecting users from fraudulent activity.
Tether Refutes Wall Street Journal’s Investigation Claims
The Wall Street Journal recently reported that federal prosecutors in Manhattan are investigating the firm for money laundering and law violations. The report also alleged the stablecoin’s use by global criminal networks involved in drug trafficking, terrorism, and hacking.
However, the USDT issuer issued an official statement to deny these allegations, criticizing the Wall Street Journal for “reckless allegations” without named sources or official confirmations. The company emphasized its proactive collaboration with law enforcement agencies to prevent the misuse of the USDT.
The firm’s CEO, Paolo Ardoino, added on his X account that such reports are recycled misinformation.
