Embattled commodity trader Radiant World secured financing from stablecoin issuer Tether in 2024 for its base metals trading business, according to people familiar with the arrangement.
In late 2024, shortly after expanding into commodity trade finance, Tether provided Radiant World with a committed facility worth US$150mn, one of the people said. The facility was intended to fund the firm’s base metals trading.
The facility was repaid and Tether is not believed to have any remaining exposure to the company, two of the people said.
Tether issues USDT, the world’s largest stablecoin by value, and had already indicated it was making a foray into trade finance lending although public details of its activity have been scant.
Its financing of Radiant World has not previously been reported. The iron ore and metals trader has come under intense scrutiny and is facing lawsuits from lenders that allege it used fake invoices to obtain financing for its large iron ore trading activities. Radiant World has denied the allegations.
The metals business was distinct from Radiant World’s iron ore activity, which was largely managed from Asia, according to people familiar with the company.
One of the people said the credit line from Tether was envisaged as a pilot that could expand into a larger relationship, but said Tether chose not to renew the facility.
Tether and Radiant World did not respond to requests for comment.
Radiant World began a push into metals such as copper, nickel and manganese earlier this decade, hiring traders from large firms including IXM. The business was growing but remained small compared with the company’s core iron ore activity, people familiar with the company said.
In recent months, banks and large counterparties such as Glencore, Cargill and Vitol have stopped doing business with Radiant World due to the suspicions about the invoices it presented to lenders.
Earlier this week, GTR reported that Japanese bank Mizuho is alleging Radiant World fabricated emails purportedly sent to and received from Glencore to try to convince the bank that US$95mn of receivables it had financed were genuine.
Late on September 15, Glencore accused the company of fraud for the first time, saying it had evidence of falsified invoices and communications.
Yesterday (September 16) Radiant World said in a statement it had filed a US$2bn lawsuit against Glencore in Singapore and “is confident that, when the facts and the contemporaneous record are examined by the court, its position will be vindicated”.
