Latest news with #crypto
Yahoo
4 hours ago
- Business
- Yahoo
Why crypto giant Tether bought a South American farming company
By Marcelo Teixeira NEW YORK (Reuters) -Crypto powerhouse Tether, the world's largest digital assets company, is leveraging its recent acquisition of a South American agricultural firm to make a strategic play for the multi-trillion dollar a year global commodities trade. The company aims to embed its stablecoin, a digital currency pegged to the U.S. dollar that trades in crypto exchanges, into the core of markets where raw materials are bought and sold, promising to slash cross-border payment costs and times from days to seconds. New York-listed Adecoagro, a company that produces dairy in Argentina, rice in Uruguay and sugar and ethanol in Brazil, among other products, agreed in April to sell 70% of its shares to Tether in a deal valued at around $600 million. It is another sign that the quickly-expanding crypto industry is moving into brick-and-mortar businesses, and broadening investments in physical assets. "The crypto industry is increasingly focused on bridging digital finance with tangible assets," said Joe Sticco, chief executive of Cryptex Finance, a company that created indexes that mirror cryptocurrencies' market caps. He said that by adding income-generating assets like farmland or food processing plants, Tether could strengthen its balance sheet and provide a hedge against inflation. Tether's main business segment is USDT, a digital currency backed mostly by U.S. Treasuries. Launched in 2014, USDT has grown sharply in trading volumes amid rising interest in cryptocurrency and token prices. It is a way to make payments outside of the traditional global financial system. The big difference between USDT and bitcoin or another cryptocurrency like ethereum is that USDT is designed to track the U.S. dollar, the currency dominating global trade. COMMODITIES TRADING Tether has issued $143 billion in USDT so far, and it said in its first quarter report that it has $149 billion in reserves, including $120 billion in U.S. Treasuries. "Tether wants to boost the use of its stablecoin to make cross-border payments, something that I think will grow a lot in financial markets, particularly in commodities markets," said Marcos Viriato, the chief executive of Parfin, a South American company providing technology for transactions with cryptocurrencies. "If a company in Brazil sells commodities to someone in Bolivia, the payment through conventional channels could take more than three days. With USDT it would take seconds," he said, adding that operation costs would also be much lower. Parfin has a pilot project with Brazil's third largest bank, Banco Bradesco, where Brazilian commodities exporters sell products to clients abroad who pay with stablecoins. Bradesco then uses Parfin's infrastructure to convert those USDT to local currency, which is deposited in exporters' accounts. "Tether's investment approach prioritizes companies that expand our distribution network and enhance the real-world utility of stablecoins, with Adecoagro as a prime example," Tether said in response to a Reuters request for information on the deal. The company said it is evaluating, alongside Adecoagro's management and other industry experts, how stablecoins could enhance efficiency and liquidity in commodity trading. Tether reported late last year that it had financed a physical crude deal between a major oil company and a commodities trader, which was settled using USDTs, the first time a deal on these terms was done. Reuters reported earlier this year that Russia was using cryptocurrencies in its oil trade with China and India to skirt Western sanctions. Venezuela has also sought to use digital currencies to trade. SUGAR TOKEN Another possible option for Tether as it enters the agriculture world is the so-called tokenization of commodities, said Gracy Chen, chief executive of crypto exchange Bitget. Tether already has a gold token, which mirrors gold's value and is backed by gold reserves. It could look now into a sugar or corn token, that could be used for hedging or as a collateral in pre-harvest financing, Chen said. "In effect, they are turning farmland, sugar mills and renewable energy plants into programmable financial instruments," she said. Tether said that it sees "significant potential in exploring the tokenization of real-world assets, including agricultural commodities," although it stressed that there were no immediate plans to launch a sugar or corn token. Instead, for now, the crypto company will use its acquisition for a different application. Tether said it will tap renewable energy produced by Adecoagro in its operations in South America, such as the electricity coming from sugarcane mills, to power a bitcoin mining operation.
Bloomberg
4 hours ago
- Business
- Bloomberg
Trump Signals Agreement With GOP on Crypto Dispute
President Donald Trump said Tuesday night he had convinced holdout conservatives to move forward with a plan from House Republican leaders to pass three industry-backed crypto regulatory measures. Bill Faries reports on Bloomberg Television. (Source: Bloomberg)
Crypto Insight
5 hours ago
- Business
- Crypto Insight
Ethereum DeFi connects to TON and Telegram with Tac mainnet launch
Telegram is opening up to decentralized finance (DeFi) on Ethereum with the mainnet launch of Tac, a third-party blockchain bridging apps on the Ethereum Virtual Machine (EVM) to The Open Network (TON). Tac mainnet has launched with a mission to bring EVM decentralized apps (DApps) to TON and Telegram ecosystems, the team behind the network announced on Tuesday. The network allows Telegram users to interact with EVM DApps directly within the messenger, offering access to a range of DeFi protocols such as Curve, Morpho, Euler and more, Tac co-founder Pavel Altukhov told Cointelegraph. For developers, Tac provides EVM a frictionless way to deploy on TON without rewriting code from scratch, unlocking exposure to Telegram's billion-strong user base. What is Tac and why does Telegram need it? First publicly announced in July 2024, Tac is designed to act as a full EVM-compatible layer-1 blockchain connecting Ethereum DApps to the TON and Telegram ecosystems. According to Tac co-founder Marco Monaco, Tac is a project built on TON that features its own jetton TON token and works with other projects within the TON ecosystem to 'accrue value to TON.' Unlike TON's native cryptocurrency, Toncoin, jettons on TON are custom crypto assets issued on the TON blockchain and built using smart contracts similar to how ERC-20 tokens operate on Ethereum. Since Telegram ceased support for all blockchains other than TON for its Mini App ecosystem in early 2025, developers were forced to adapt EVM apps for TON Virtual Machine (TVM) to access Telegram. 'But now, Tac allows EVM developers to integrate their applications with Telegram and TON effortlessly,' Tac wrote in a post in March 2025. Tac team works separately from TON and Telegram Since its public announcement last year, Tac network raised a total of $11.5 million across its seed and strategic rounds in late 2024 and early 2025. Its latest $5 million strategic round was led by the Web3 venture capital firm Hack VC, which also participated in the $6.5 million seed round last November. Although Tac is designed to connect EVM dApps to TON and Telegram ecosystems, the network is being developed by a separate team from both TON and Telegram, a spokesperson for Tac told Cointelegraph. As previously mentioned, Telegram's TON-only strategy for Mini Apps received mixed reactions from the community, with many raising questions about the messenger's pursuit of freedom and decentralization. On the other hand, TON Foundation board member Steve Yun said it was the right move in the context of security and scalability. Source:
Forbes
6 hours ago
- Business
- Forbes
Trump Says Most House GOP Holdouts Have Agreed To Back His Crypto Bills
President Donald Trump said nearly all of the House Republicans who blocked the passage of a procedural vote on a package of key crypto bills on Tuesday have agreed to vote in favor of it, potentially clearing the way for the legislation to move forward at a time when the president's businesses have become more deeply involved in crypto. Rep. Marjorie Taylor Greene, R-Ga., arrives for a meeting of the House Republican Conference at the ... More Capitol Hill Club on Tuesday, June 10, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images) CQ-Roll Call, Inc via Getty Images Thirteen Republicans, mostly hardline conservatives, voted alongside Democrats in a 196-223 vote against a procedural motion to move three crypto bills forward. In a post on his Truth Social platform on Tuesday night, Trump said he had a 'short discussion' at the Oval Office with '11 of the 12 Congressmen/women necessary to pass the GENIUS Act' and 'they have all agreed to vote tomorrow morning in favor of the Rule.' Trump added that Speaker Mike Johnson, R-La., joined the meeting via telephone and 'looks forward to taking the Vote as early as possible.' The president's post didn't mention which 11 of the 13 holdouts had met him and it is also unclear if the bill now has enough backers to allow for the procedural vote's passage. The bills include what's known as the GENIUS Act to regulate stablecoins, the Digital Asset Market Clarity Act and the Anti-CBDC Surveillance State Act. Johnson told reporters House members who blocked the legislation did so because they want to see all three bills joined together in one package, which would allow them to wield more control over the regulations. Earlier Tuesday, Trump urged the House to 'get the first Vote done this afternoon' and told 'ALL REPUBLICANS' to 'VOTE YES' in a post on Truth Social, acknowledging what Republicans have dubbed as 'crypto week.' Rep. Marjorie Taylor Greene, R-Ga., said she voted against the rule for debating the legislation because House Speaker Mike Johnson, R-La., did not allow members to submit amendments and because the GENIUS Act does not include a ban on a Central Bank Digital Currency (though the Anti-CBDC Surveillance State Act explicitly prohibits the Central Bank from issuing a digital currency). Key Background The GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act would legitimize the use of stablecoins for issuers and coin holders by establishing a regulatory framework. The Digital Asset Market Clarity Act establishes which agency—the Securities and Exchange Commission or the Commodity Futures Trading Commission—regulates certain digital assets. The Anti-Central Bank Digital Currency Surveillance State Act prohibits the Federal Reserve from issuing a central bank digital currency. The House is expected to vote again on the rule later Tuesday. The vote against moving the crypto bills forward effectively stalled business in the House, threatening timely passage of Trump's request to claw back $9.4 billion in federal foreign aid and public media spending as Congress has until Friday to act on the appeal under the 45-day timeline. Tangent Trump is pushing the crypto legislation as his family businesses have deepened their involvement in the industry, including through the launch of the crypto firm, World Liberty Financial, which has multiple foreign investors. Some Democrats have pulled back on their support of new crypto regulations as Trump's family business ventures in the industry have raised conflict-of-interest concerns. Further Reading Landmark Crypto Regulation Passed By Senate: What To Know About Stablecoin GENIUS Act (Forbes) Trump-Backed Crypto Regulation Bills Fail To Clear Key Hurdle In Congress (CNBC) Crypto Bills Hit Procedural Snag In Congress (Reuters)
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Welcome to "Crypto Week." With Two Cryptocurrency-Focused Bills in the House This Week, Is The Industry Officially Mainstream?
Key Points Lawmakers are pushing through legislation that could give the crypto industry a solid leg up. Increased adoption is crucial for crypto to go mainstream. Pay attention to how people use digital assets and how they integrate with existing businesses. 10 stocks we like better than Bitcoin › Bitcoin (CRYPTO: BTC) broke the $120,000 barrier on Monday, July 14, as what's been dubbed "Crypto Week" kicked off in Washington D.C. Ethereum (CRYPTO: ETH) pushed above $3,000 for the first time since February. And crypto's total market cap reached a new high of over $3.8 trillion. As CoinTelegraph points out, that's close to the UK's GDP. What's driving the increase? In part, it was optimism about regulatory change. The House had planned to discuss three crypto bills between July 14 and 18. The GENIUS Act, designed to regulate stablecoins, the Digital Asset Market Clarity Act (Clarity Act), which sets clear definitions of what a security, cryptocurrency, or stablecoin is, and a No CBDC Act, which would essentially prevent the Fed from launching a digital dollar. In reality, Crypto Week fizzled on Tuesday after failing to get enough votes in the House to move to debate. Nonetheless, the very fact that these legislative changes are on the table and have progressed so far, so quickly raises the question of whether the industry is now officially mainstream. Are digital assets now mainstream? Cryptocurrencies have taken center stage in 2025, not least because of the surging total market cap and shift in government attitudes. However, neither price action nor political discourse translates into going mainstream. That depends on widespread adoption, not only in financial systems but also in other businesses. Legislative progress would certainly help utilization, but it won't drive it alone. Here are some other indicators for long-term investors to watch. Increased use of stablecoins Stablecoins are cryptos that are pegged to real-world assets, such as the U.S. dollar. If passed, the GENIUS Act would give regulatory clarity to this industry, particularly around reserves, audits, and know-your-customer rules. It may well be the springboard for banks, merchants, fintechs, and even retailers to issue their own coins. If it becomes cheaper for a consumer to shop using an Amazon or Walmart stablecoin, that could be a game-changer in terms of adoption. A flourishing and dependable stablecoin industry could also give consumers in unstable economies an easier way to access dollars, increasing the use of digital assets around the world. That, in turn, could be significant for smart contract cryptos like Ethereum and Solana (CRYPTO: SOL). Global remittance adoption One of the attractions of blockchain technology is that users can make fast, low-cost transactions. If you've ever paid fees and waited days for an international money transfer, you'll understand how crypto -- particularly stablecoins -- could disrupt the global remittance industry. Precedence Research values that market at almost $30 billion in 2025 and predicts it could grow to over $100 billion by 2034. It's important to pay attention to how crypto gets incorporated into the market. For example, PayPal (NASDAQ: PYPL) launched its own stablecoin that's built on the Ethereum network. MoneyGram is partnering with Stellar (CRYPTO: XLM). International payments may well take crypto mainstream, particularly if stablecoin legislation gets passed. But it's likely that this will happen through existing players working with crypto projects rather than individual cryptocurrencies shaking up the industry. Real-world use cases for crypto If the Clarity Act does become law, it would remove some of the regulatory uncertainty that's been holding the crypto industry back. But the legal situation is only one part of the puzzle, and the risk is that it opens the door to more investment without necessarily increasing adoption. Crypto may have become part of many portfolios, but few of us use digital assets on a regular basis. Recent Motley Fool research shows that more than one in five Americans own crypto, but around a quarter of them have limited understanding of how it works. That needs to change. Don't only pay attention only to prices, look at how people use the technology. Increased adoption will take trust, technological development, and improved usability. For example, companies have been exploring things like smart contract insurance policies, blockchain-based tokenized real estate deals, and web3 gaming, but they are not yet the norm. Whether Bitcoin can consolidate its position as digital gold Bitcoin has shown remarkable resilience in recent months. While tariff uncertainty and geopolitical tensions have shaken equity markets, the lead crypto has gained almost 70% since before the election. Much has been said about its potential as a hedge against inflation and a store of value, but that hasn't always been borne out by its price. For example, when U.S. inflation was high in 2021 and 2022, Bitcoin was too volatile to act as a safe haven asset. That's changed this year. In part because spot Bitcoin and Ethereum ETFs have made it easier for institutions to invest. According to Bitcoin Treasuries, there's over $150 billion in assets under management with spot Bitcoin ETFs at the time of writing. Increased institutional capital tends to bring more stability as well as more cash from asset managers, hedge funds, pension funds, and more. What matters now is whether Bitcoin can hold steady, particularly if the economy falters. Seven months of good performance does not make it digital gold. Shifting streams The cryptocurrency industry is growing up, but it still has a way to go -- and a clear regulatory framework could help it get there. That was demonstrated by the spike in prices when investors thought this would be the week that the U.S. passed its first serious crypto legislation. However, it is going to take time, even with a crypto-friendly administration in power. And once legislation passes, we still need to see increased adoption before this can be considered anything close to a mainstream asset. In the meantime, continue to treat crypto as a risky asset and limit your exposure accordingly. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
