What is Tether?

Tether, USDT, is a blockchain-based cryptocurrency. These crypto coins are backed by an equivalent amount of traditional fiat currencies. Conventional fiat currencies are similar to euros, pounds, or the dollar, which are held by a designated bank account.

 

Facts About Tether?

  • Tether tokens are the native token of the Tether network. They trade under the symbol USDT.
  • Tether is a new range of cryptocurrencies that are called stablecoins. The aim of stablecoins is to keep the cryptocurrency valuations as stable as possible. Most cryptocurrencies are known for their extreme rise and dip in value. 
  • There are several stablecoin categories, including non-collateralize stablecoins and collateral stablecoins. Non-collateralize stablecoins have zero collateral but operate similarly to banks. They maintain the necessary supply of tokens.
  • Collateralized stable coins, Fiat currency like US dollar, Yen, or Euro backs each crypto coin in circulation.
  • Tether was designed to build a bridge between cryptocurrencies and fiat currencies. It aims to provide the most transparent option for users, as well as to offer minimal transaction charges. According to data published in the Wall Street Journal, certain percent of bitcoin trading is all done in Tether.
  • Tether initially launched as RealCoin in July 2014 and was rebranded by November. Tether tokens can be transacted on many popular cryptocurrency exchanges. This includes Binance, BitFinex, Kraken, and CoinSpot. Tether is pegged against USD and maintains a 1-to-1 ratio. 
  • It should be noted that Tether does not guarantee any right of redemption for ‘real money’ – meaning Tethers cannot be exchanged for USD.

 

Want to know more about Tether? Open up an online bank account, deposit your crypto, and start using your BlockCard as soon as your application is complete.

 

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