Tether Offers Boron-Backed Tokens to the Government of Turkey
Tether, the world’s biggest stablecoin operator, has reportedly offered the Turkish government a plan to create digital tokens representing boron minerals. First reported by Bloomberg, the proposal aims at tokenizing vast boron resources of Turkey with the use of blockchain.
According to Eti Maden Isletmeleri Genel Mudurlugu, Turkey’s state-owned boron miner, it is estimated to have more than 70 percent of the overall world reserves of boron. Boron is an important mineral resource used in various industries: from ceramics and detergents to fertilizers and glass manufacturing. The government projects revenues from boron sales as high as $1.3 billion in 2024.
Early Stages of Negotiation
Although an official from Turkey said that the Tether proposal isn’t ready to be implemented, deliberations reportedly continue. A senior official at Turkey’s Energy Ministry confirmed the talks were ongoing but in their infancy. Also, USDT put forward plans for an Istanbul-based digital asset exchange to further nail its ambition in the region.
Keeping with the Global Trend of Tokenization
The proposition of Tether is part of a wider trend in the crypto industry of tokenizing real-world assets through blockchain. It enables physical assets, including commodities, to be traded digitally and provides better access to liquidity and investors from different parts of the world.
Tether’s Expanding Role in Turkey
Interest from Tether in Turkey has grown consistently. In response, Paolo Ardoino, chief executive of Tether, said that this company wants to promote the blockchain ecosystem of Turkey since the nation could be powerful enough as a hub for blockchain technology. Moreover, Anadolu Aydinli, local expansion manager at Tether, has been holding meetings with Turkish officials regarding mining, energy, and digital asset regulations.
The demand for stablecoins such as USDT continues to increase in Turkey as locals seek alternative ways of hedging against currency and inflation volatility. According to a report provided by Chainalysis, Turkey leads the world in stablecoin buys relative to its GDP-4.3% of its GDP was spent on stablecoins between April 2023 and March 2024.
