Tether, the issuer behind the world’s largest stablecoin, USDT, has made a surprising move by investing $100 million in Adecoagro, a leading Latin American agricultural firm. The investment secures Tether a 9.8% stake in Adecoagro, marking the company’s first venture into the agriculture and food sectors. This decision comes as Tether faces mounting competition in the rapidly evolving stablecoin market.
The company revealed in a filing that it utilized its existing working capital for this investment, purchasing 10,048,249 shares of Adecoagro. Founded in 2002, Adecoagro is a significant player in Argentina’s dairy industry and has expanded its operations into sugar, ethanol, and energy production in Brazil.
As Tether steps into new sectors, the stablecoin market continues to heat up. With a market cap exceeding $118 billion, USDT remains the largest stablecoin. However, rivals are emerging fast. PayPal has recently launched its US dollar-pegged stablecoin, PayPal USD, which has already crossed the $1 billion market cap threshold. Ripple Labs is also testing its new stablecoin, Ripple USD (RLUSD), on multiple blockchain networks, signaling its ambition to capture a slice of this lucrative market.
Meanwhile, Tether is diversifying its offerings with a new stablecoin pegged to the United Arab Emirates dirham (AED), in collaboration with UAE-based Phoenix Group and Green Acorn Investments. This move aims to provide a fully backed digital version of the dirham, further expanding Tether’s global reach.
With the stablecoin market hitting a record capitalization of $168 billion, Tether’s latest moves show a strategic pivot to strengthen its market position amid growing competition.