Tether, the issuer of the world’s largest stablecoin, has made a significant move into the agriculture sector by investing $100 million in Adecoagro, a major Latin American agricultural firm. This investment, which grants Tether a 9.8% stake in the company, marks its first foray into the agriculture and food industry.
Tether utilized funds from its working capital to acquire 10,048,249 shares of Adecoagro. Founded in 2002, Adecoagro is known for its substantial milk production capabilities in Argentina and its involvement in the sugar, ethanol, and energy sectors in Brazil.
Prior to this, Tether had invested in various emerging technologies, including artificial intelligence, Bitcoin mining operations, and digital education. The company also plans to introduce a new stablecoin pegged to the UAE dirham in collaboration with Phoenix Group and Green Acorn Investments.
The stablecoin market is becoming increasingly competitive, with new entrants such as PayPal’s US dollar-pegged stablecoin, PayPal USD, gaining traction. Additionally, Ripple Labs has announced the testing of its Ripple USD (RLUSD) stablecoin on multiple blockchain networks. As of August 26, the market capitalization for stablecoins (excluding algorithmic ones) reached a record $168 billion.
Tether’s investment in Adecoagro reflects a strategic diversification into agriculture, a sector distinct from its previous focus areas. The move comes as competition in the stablecoin market grows, with new products and innovations intensifying the race.
