The American company Tether, the issuer of USDT stablecoins, has approached Turkish government officials with a proposal to use blockchain technology to create digital tokens tied to the value of raw materials, namely boron and its derivatives.

Turkey and its state-owned mining company Eti Maden Isletmeleri Genel Mudurlugu are the monopoly suppliers of borates in the international commodities market, as the country holds more than 70% of the world’s reserves. Steady demand for boron-containing products in the amount of $1.3 billion makes it possible to use the opportunities of the raw materials sector of the economy to grow the country’s cryptocurrency industry and issue digital assets tied to the value of minerals, Tether explained.

Bloomberg, citing its own sources, reported that the largest issuer of stablecoins has submitted to the Turkish government a detailed plan for using blockchain and creating a digital exchange for the circulation of tokenized commodities. However, the Turkish government reacted with restraint to this initiative.

On condition of anonymity, a Turkish government official told the agency that the proposal could not yet be implemented. A counterpart at the Department of Energy told Bloomberg that talks with Tether are at an early stage.

Earlier, in comments to Bloomberg, a Tether representative said that the company is actively exploring lending opportunities in the commodity sector, but refused to announce the list of interested companies and the potential volume of the loan portfolio.