Tether, the company behind the world’s largest stablecoin, USDT, is branching out into agriculture. This move shows Tether’s plan to grow beyond just its stablecoin offerings.
Recently, Tether filed with the US Securities and Exchange Commission (SEC) to announce a $100 million investment. They acquired a 9.8% stake in Adecoagro, a leading agricultural firm in Argentina. This deal, completed between July 29 and August 16, 2024, involved purchasing over 10 million shares. Tether funded this investment using its working capital.
Adecoagro is valued at over $1 billion and operates in Argentina, Brazil, and Uruguay. They process about 550,000 liters of milk every day and also produce renewable energy through biodigesters. Tether's CEO, Paolo Ardoino, celebrated the investment with a globe emoji on the platform X. However, Tether hasn’t shared any further comments about this acquisition.
While this may seem surprising for a company known for its dominance in the stablecoin market, Tether has a history of diversifying. They’ve made notable investments in Bitcoin mining, artificial intelligence, and education.
As for USDT, it remains the largest stablecoin in the industry, boasting a market cap of over $118 billion. It operates across multiple blockchain networks and focuses on improving access to stablecoin solutions in emerging markets.
Ardoino pointed out that USDT has become a digital dollar for millions in areas lacking strong traditional banking systems. He said, “USDT has become the trusted digital dollar for hundreds of millions of people. It simply gives everyone access to stability when they need it the most, regardless of their social status.”
Tether’s strategy appears to be paying off, as they generate over $13 million in daily revenue, according to Token Terminal.