Tether Holdings Ltd., the issuer behind the worldâs largest stablecoin USDT, has proposed an ambitious plan to Turkeyâs government. The plan aims to âmodernizeâ the countryâs boron market using blockchain technology.
The proposal involves creating digital tokens backed by borate minerals, a key resource where Turkey controls over 70% of the global supply.
đ¶Further Details On The Proposal
As Bloomberg reported earlier today, citing individuals familiar with the matter, Tether pitched the idea to Turkish officials to tokenize boron, used in various industries such as ceramics, fertilizers, and glass production.
In addition to the tokenization proposal, the company has also raised the possibility of establishing a digital asset exchange in Istanbul, Turkeyâs financial hub.
Tokenization is a growing trend within the digital asset space, where real-world commodities or assets are represented by digital tokens on a blockchain.
Bloomberg revealed that proponents argue that tokenization can improve market efficiency, liquidity, and transparency.
With Turkey projected to generate $1.3 billion in boron sales by 2024, the government may view Tetherâs proposal as an opportunity to tap into innovative technologies and boost economic growth.
đšTurkeyâs Growing Crypto Market And Tetherâs Interest in Boron
Although the specific benefits of Tetherâs proposal remain unclear, the companyâs interest in Turkey is not entirely unexpected.
So far, Turkey has emerged as an attractive market for digital assets, particularly due to âhigh inflation and the declining value of the Turkish lira,â which has led to increased crypto adoption. Boron, a naturally abundant resource in Turkey, presents an intriguing choice for Tetherâs tokenization efforts.
Turkeyâs state-owned mining company Eti Maden Isletmeleri Genel Mudurlugu manages the countryâs boron reserves, and the governmentâs control over this valuable resource could make it an ideal candidate for blockchain-based solutions.
While the Turkish government has not yet committed to the proposal, discussions are ongoing, with key meetings between Tether officials and senior Turkish figures, including Vice President Cevdet Yilmaz and Energy Minister Alparslan Bayraktar.