As stable coin competition grows, Tether invests $100 million in an agricultural company
Tether, the world's largest bitcoin issuer, has invested $100 million to acquire a 9.8% stake in Latin American giant Adecoagro. This is Tether's first investment in the agriculture and food sector.
In the past, Tether has made strategic investments in emerging technologies such as artificial intelligence and peer-to-peer platforms, Bitcoin (BTC) mining and digital education initiatives, the company said in its filing.
Registration with the US Securities and Exchange Commission. Source: sec.gov
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Tether used a working capital fund for the investment
Teter said in the filing that he “used funds from his own working capital” for AdecoAgro Investments. Tether now owns 10,048,249 AdeccoAgro shares, representing 9.8 percent of its “outstanding common stock.”
In the year Founded in 2002, Adecoagro is a major dairy producer in Argentina, with a processing capacity of 550,000 liters per day at its Buenos Aires plant in Argentina, according to its website. The company entered the Brazilian sugar, ethanol and energy businesses in 2005.
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USDT sees increasing competition in the stablecoin market
According to data from CoinMarketCap, Tether USDT is the largest stablecoin with a market capitalization of over $118 billion. Tether recently announced plans to introduce a new stablecoin, the United Arab Emirates Dirham (AED).
The new stablecoin will be launched in partnership with UAE-based Phoenix Group and Green Acorn Investments. This collaboration aims to create a digital version of the dirham currency “fully backed by liquid UAE reserves”.
USDT Finance. Source: CoinMarketCap
However, competition in the stablecoin market is intensifying with the introduction of new players, such as PayPal's US dollar-pegged stablecoin, PayPal USD, which has a total market capitalization of more than $1 billion.
Ripple Labs has announced the first tests of its United States dollar-pegged stablecoin, Ripple Labs' Ripple USD (RLUSD), on the XRP ledger and Ethereum mainnets. It plans to launch fiat-backed tokens on more blockchain networks in the future.
In the year On August 26, the market capitalization of statscoins, excluding algorithmic ones, hit a record $168 billion. The market reached an all-time high of $167 billion in March 2022, but fell to $135 billion by the end of that year.
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