Tether Invests $100M in Latin American Agricultural Giant Adecoagro

Tether, the issuer of the world's largest stablecoin, has invested $100 million to acquire a 9.8% stake in Latin American agricultural giant Adecoagro.

Tether, the company behind the world’s largest stablecoin, has acquired a 9.8% stake in Latin American agricultural giant Adecoagro, according to a recent filing with the US Securities and Exchange Commission (SEC). This marks Tether’s first investment in the agriculture and food sector.

The SEC filing reveals that Tether used cash from its own working capital for the Adecoagro investment. As of the filing date, Tether owned 10,048,249 shares of Adecoagro, which represents 9.8% of the outstanding common shares.

Founded in 2002, Adecoagro is a major milk producer in Argentina, with 550 thousand liters per day of processing capacity at its Buenos Aires plant, according to the company’s website. In 2005, Adecoagro entered the sugar, ethanol and energy businesses in Brazil.

Tether’s USDT is the largest stablecoin, boasting a market capitalization of over $118 billion, based on data from CoinMarketCap. Recently, Tether announced plans to introduce a new stablecoin pegged to 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, which is “fully backed by liquid UAE-based reserves.”

However, competition has been increasing in the stablecoin market with the introduction of new players, such as PayPal’s US dollar-pegged stablecoin, PayPal USD, which has already surpassed $1 billion in total market capitalization.

Moreover, 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 the fiat-backed token on more blockchain networks in the future.

On Aug. 26, the market capitalization for stablecoins, excluding algorithmic ones, hit a record $168 billion. The market hit an all-time high of $167 billion in March 2022 but fell to $135 billion by the end of that year.

The above is the detailed content of Tether Invests $100M in Latin American Agricultural Giant Adecoagro. For more information, please follow other related articles on the PHP Chinese website!