Tether Plans to Tokenize Turkey's Boron Reserves, a Mineral the Country Dominates

Tether Holdings Ltd., the company behind the world's largest stablecoin, USDT, is pursuing a plan to integrate blockchain technology into Turkey's boron sector.

Key Points:

Tether Holdings Ltd. is reportedly proposing a plan to integrate blockchain technology into Turkey’s vast boron sector.

The proposal aims to digitally tokenize borate minerals, highlighting Tether’s interest in merging the cryptocurrency and commodity industries.

If approved, the plan could pave the way for new applications of blockchain technology in the commodity sector.

Turkey, through its state-owned enterprise Eti Maden, is the world’s leading producer and exporter of boron, controlling over 70% of global reserves.

This move by Tether is part of a broader strategy to expand the use of USDT as a stable payment method in emerging markets.

Tether Holdings Ltd., the company behind the world’s largest stablecoin, USDT, is pursuing a plan to integrate blockchain technology into Turkey’s boron sector, multiple sources told Tokenhell.

The proposal, submitted by Tether to Turkish authorities, could modernize the management and trading of boron reserves, a mineral crucial in various industries. Turkey possesses a strategic advantage in this sector, controlling over 70% of global boron reserves.

According to the sources, Tether also proposed setting up a digital asset exchange in Istanbul, Turkey’s financial hub. If approved, the plan would expand the application of blockchain technology beyond finance and payments into the commodity sector.

Boron is a vital mineral used in a wide range of industries, including ceramics, detergents, fertilizers, and glass production. Turkey is the leading producer and exporter of boron, with Eti Maden, a state-owned enterprise, spearheading the country’s operations in this sector.

Boron is used in ceramics, detergents, fertilizers, and glass productionMultiple sources familiar with the discussions told Tokenhell that Tether submitted this proposal to officials in Turkey’s Energy Ministry and Eti Maden.

However, government representatives indicated that it is still too early in the discussions to implement the proposal, which local officials are reviewing.

The discussions are reportedly focused on exploring how to tokenize boron assets, with the broader aim being to increase efficiency and transparency in managing boron transactions.

This effort could potentially open the door for other commodities to be tokenized as well.

Turkey has become one of the most active markets for digital assets due to economic challenges, such as high inflation and the declining value of the Turkish lira. Chainalysis data shows that Turkey had around $137 billion in crypto inflows through June 2023, highlighting the country’s growing interest in cryptocurrency.

This environment has prompted multiple crypto firms to explore opportunities in the Turkish market.

In addition to Tether, other companies like Garanti BBVA Kripto have announced partnerships with global blockchain firms, such as Ripple and IBM, to enhance crypto trading services.

These moves indicate that Turkey is becoming an increasingly strategic destination for digital asset companies, driven by the need for alternative financial solutions amid economic instability.

Tether has been actively seeking to expand the use of USDT as a stable payment method in emerging markets. The stablecoin, pegged to the US dollar, has grown to a circulating supply of $120 billion and remains popular among traders as a reliable store of value and a bridge between crypto exchanges.

Beyond trading, Tether aims to position USDT as an affordable and quick way to move funds, especially in regions with limited banking infrastructure.

Tether’s interest in tokenizing physical commodities like boron aligns with its broader strategy to integrate digital assets into traditional finance.

By enabling access to commodities via blockchain, the company aims to offer additional financial solutions, particularly in countries with underdeveloped banking systems.

This approach may also help users avoid high transaction fees associated with traditional banking channels, creating more efficient ways to manage both digital and hard assets.

While Tether continues to expand its offerings, its global operations face increasing scrutiny from regulators. The integration of digital assets with commodities like boron adds complexity to regulatory efforts, particularly in countries under economic sanctions.

Reports suggest that USDT is already being used in places like Venezuela and Russia, which have limited access to the global banking system.

This development poses challenges for regulatory bodies attempting to monitor and control money flows.

Despite regulatory hurdles, Tether’s USDT earned $5.2 billion in the first half of 2024, driven by conservative investments such as US Treasuries.

The company’s strong financial performance supports its ambitions in both the cryptocurrency and traditional finance sectors.