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.

 

Back to Resources

The Latest

Unlocking the Secret Language of Crypto: Your Ultimate Slang Guide

The world of crypto is admittedly confusing. Some people have trouble understanding how it works and what it even is. Others have trouble understanding how they can operate within this world.  To make matters worse, crypto has so much slang associated with it that it has effectively formed a new language. Terms like FOMO, FUD,… Read Article

Unleashing the Power of ApeCoin: How One Cryptocurrency is Disrupting the Market

If you’ve been paying attention to the world of crypto or digital media, chances are you’ve heard of Bored Ape Yacht Club. Bored Ape Yacht Club is a massively popular NFT collection released by Yuga Labs. Now, the ApeCoin cryptocurrency is set to make as big of a stir as the NFT collection did.  So,… Read Article

The Future of Cryptocurrency: Proof of Stake and How it’s Changing the Industry

Cryptocurrency is constantly changing. However, one of the biggest recent changes is the shift away from proof-of-work and toward proof-of-stake. This has a pretty massive impact on how cryptocurrencies work.  But what is proof of stake? How will it change crypto? What do you need to understand about it? Keep reading to find out the… Read Article

Revolutionizing Transactions: How Smart Contracts are Changing the Game

Negotiating any sort of contract can be intimidating, especially when you are transferring money or other assets. In these cases, you want to be sure that the deal you are making will go through and that everyone will hold up their end of the deal. Otherwise, you may end up getting ripped off. Smart contracts… Read Article


6.38%

Crypto Rewards
on Spend

You also have access to:

BANK ACCOUNTS
DEBIT CARDS
BUYING, SELLING, & SPENDING CRYPTO


ARE YOU READY TO GET UNBANKED?


Nah, I enjoy high fees...

x
Want to be an owner in Unbanked? Limited shares available at a 20% discount. 🔥
Invest Now
This is default text for notification bar
Learn more