Tether, operator of the world’s biggest stablecoin by market capitalization, has reportedly proposed creating tokens representing borate minerals to the Turkish government.

Tether asked Turkey to consider implementing blockchain technology to create digital tokens backed by boron, Bloomberg reported on Oct. 24.

While a Turkish official said that Tether’s boron proposal isn’t something that can be currently implemented, another official at the country’s Energy Ministry reportedly claimed that the talks with Tether are at an early stage.

The report also suggested that Tether raised the idea of establishing a digital asset exchange in Istanbul.

Turkey holds more than 70% of boron’s global supply

Borate minerals are natural compounds used mostly to manufacture ceramics, detergents, fertilizers and glass.

Turkey’s state-owned boron provider, Eti Maden Isletmeleri Genel Mudurlugu, estimates the country holds over 70% of the world’s boron reserves. The local government reportedly forecasts about $1.3 billion in boron sales in 2024.

Tether proposes boron-backed tokens to Turkey’s government image 0

Five top countries for global distribution of boron. Source: Etimaden.gov.tr

Tether’s suggestion for a digital currency backed by boron aligns with the crypto industry’s growing interest in tokenization , which uses blockchain networks to generate representations of  real-world assets, or RWAs .

Tether committed to crypto innovation in Turkey

While Tether did not directly confirm or deny the report to Cointelegraph, the company’s CEO Paolo Ardoino emphasized that Tether is deeply committed to innovation in Turkey’s digital asset landscape amid massive adoption. He said:

“With Turkey emerging as a key hub for blockchain technology, we’re excited to continue supporting this momentum and exploring new opportunities for growth in the region.”

Tether’s commitment to industry adoption in Turkey has been increasing, with Tether’s local expansion manager, Anadolu Aydinli, meeting multiple local government officials in recent months.

In late September, Aydinli met with Turkey’s Vice President Cevdet Yılmaz to discuss energy and mining regulations.

Tether proposes boron-backed tokens to Turkey’s government image 1

Tether’s expansion manager, Anadolu Aydinli (left), Turkey’s Vice President Cevdet Yılmaz (center). Source: LinkedIn

“As we continue our work to create a flourishing environment for growth in our country, it is always a valuable milestone to have the support of our most senior governmental officials,” Aydinli said.

In August, Aydinli also met with Turkey’s Energy Minister Alparslan Bayraktar to talk about investment in the energy sector in Turkey.

In July 2024, Tether signed an agreement with a local crypto firm to assess the development of programs to introduce private and public stakeholders in Turkey.

Turkey is one of the biggest stablecoin markets

Tether’s active involvement in crypto adoption in Turkey is in line with Ardoino’s remarks that Turkey is one of the biggest jurisdictions worldwide in terms of stablecoin demand.

He noted that people in countries like Turkey want to hold a digital version of the dollar to hedge against the volatility of local currencies and inflation.

“Our focus has to be where we are needed the most,” Ardoino told Cointelegraph in early October.

Related: US ‘dropping the ball’ on crypto, but that should change soon — Tether CEO

According to blockchain intelligence firm Chainalysis, Turkey had the highest share of stablecoin purchases relative to its gross domestic product (GDP) in the period from April 2023 to March 2024.

Based on Chainalysis’ data, stablecoin buying in Turkey accounted for 4.3% of its GDP, making it the world’s biggest spender on stablecoins relative to its GDP.

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