USDT Expands into Commodity Markets as Binance Lists Gold and Silver Options
Binance listed European-style gold and silver options on July 29, cash-settled in USDT through its ADGM-regulated Nest Exchange. This move follows the introduction of USDT-settled metals perpetuals in January. According to Shunyet Jan, head of exchange and trading at Binance, 'We've seen strong demand for our commodity perpetuals since introducing them earlier this year, and commodity options build on that momentum.'
The gold and silver derivatives market is expanding with more exchanges listing similar products. MEXC launched zero-fee gold and silver futures in January, quoted in USDT and USDC pairs. Wojciech Kaszycki, founder and chairman of Mobilum Technologies, described the shift as using crypto as a collateral, rather than spending it.
Tether has also been expanding its reach, buying 70% of Adecoagro for about $600 million, a South American sugar and dairy producer. This move is aimed at embedding USDT in physical commodity settlement. Bruno Caratori, co-founder and global chief executive of crypto asset manager Hashdex, pointed to Hyperliquid as the venue where this logic went furthest.
Regulators are also taking notice. The CFTC joined the SEC in a joint interpretation separating digital commodities from securities and covering airdrops and staking on March 17. This change may have delayed the development of crypto in the US, but it is now paving the way for further growth.