Leading stablecoin issuer Tether has approached officials in Turkey in a bid to overhaul the country’s borate minerals market through a digital currency representing tokenized versions of these minerals.
According to a recent Bloomberg report, the proposal would see Tether launch a tokenized version of borate minerals – minerals mostly used to manufacture ceramics, detergents, fertilizers, and glass – while also exploring the launch of a digital asset exchange in the country’s capital, Istanbul.
Turkey is estimated to have over 70% of global reserves of boron products, according to the country’s state-owned miner Eti Maden Isletmeleri Genel Mudurlugu, the monopoly provider of these products that’s estimated to make around $1.3 billion in sales this year.
The country is a notable cryptocurrency hotspot, as rampant inflation has made stablecoins tied to the value of the U.S. dollar increasingly popular among investors looking to preserve value.
According to Bloomberg’s report, the country received nearly $137 billion in cryptocurrency inflows in the 12 months through June of this year, the seventh-largest figure globally. However, government officials in Turkey were cited as saying the proposal can’t currently be implemented.
Tether’s growing commodity moves
The company’s flagship stablecoin USDT, has a total market capitalization of $120 billion and monetized the reserves backing the token through Treasuries and other cash equivalents that generate interest.
In the first half of the year Tether generated $5.2 billion in profit, which the firm has been investing across a variety of sectors. Including a $500 million investment plan into BTC mining operations in Uruguay, Paraguay, and El Salvador.
The firm also purchased a $100 million stake in Bitdeer technologies and is in discussions with a number of commodity trading firms about potential lending opportunities. The commodity trading industry relies on credit lines to maintain operations, as it often involves the movement of high-value shipments.
In January 2020, the leading stablecoin issuer launched a stablecoin backed by physical gold, Tether Gold (XAUT), which grew to a market capitalization of around $678 million. Earlier this year, it leveraged XAUT to launch Alloy (aUSDT), an overcollateralized stablecoin pegged to the U.S. dollar, and backed by gold.
