About Tether Coin
Tether price today is $0.998339 with a 24-hour trading volume of $75,565,994,472. USDT price is down -0.1% in the last 24 hours. It has a circulating supply of 25 Billion USDT coins and a max supply of 24.8 Billion. Bitfinex is the current most active market trading it.
What is Tether?
Tether is a stablecoin pegged to the US Dollar. A stablecoin is a type of cryptocurrency whose value is pegged to another fiat currency like the US Dollar or to a commodity like Gold.
Tether is the first stablecoin to be created and it is the most popular stablecoin used in the ecosystem. It has the largest stablecoins by circulation and market capitalization.
Who created Tether?
Tether is controlled by Tether Holding Limited or known as Tether Limited. The CEO is JL Van Der Velde, the CFO is Giancarlo Devasini and the general counsel is Suart Hoegner.
Tether was launched by the team running Bitfinex, a major cryptocurrency exchange.
How does it work?
Tether was originally based on the Omni Layer, a transport protocol on the Bitcoin blockchain. Therefore, the original version of Tether is characterized by the inherent stability and security of the longest established blockchain network.
To accelerate adoption, in September 2017, Tether was launched on the Ethereum blockchain, as an ERC20 token. Tether’s Ethereum ERC-20 is now the most popular Tether token type.
How does Tether maintain a 1:1 USD peg?
The USDT peg is maintained via a one-to-one collateral ratio. Tether Limited claims that every USDT in circulation is 100% backed by actual fiat in their reserves. Tether published their balances in their Transparency page. Tether Limited acts as a third-party custodian for the fiat currencies backing USDT.
To understand the process of how Tether is controlled by Tether Limited, take a look at the flow of fund process below:
Step 1: User deposits fiat currency into Tether Limited’s bank account.
Step 2: Tether Limited generates and credits the user’s Tether account. Tether enters into circulation. Amount of fiat currency deposited by the user must be equal to the amount of Tether issued to the user (E.g.: 500 USD deposited = 500 USDT issued)
Step 3: User transacts with USDT. The user can transfer, exchange, and store USDT.
Step 4: The user deposits USDT with Tether Limited for redemption into fiat currency.
Step 5: Tether Limited destroys the Tether and sends fiat currency to the user’s bank account.
Users can also obtain Tether outside of the aforementioned process via an exchange or another individual.
What is the purpose of Tether?
Tether converts fiat US Dollar into blockchain stablecoins and expedites the transaction to other cryptocurrencies compared to using regular fiat currencies.
Tether acts as an alternative for deposit/withdrawal and has become a popular trading pair across major exchanges as it provides ease of use in calculating profit and loss for traders. The wide acceptance of Tether makes it convenient for users to move their USD holdings seamlessly between their wallets and exchanges.
How do I buy Tether?
If you would like to buy Tether with USD, you can check out our list and look for exchanges offering USDT/USD trading. You can also buy USDT with different fiat currencies such as Euro (EUR), Korean Won (KRW), and Thai Baht (THB) by denoting it as the target pair (E.g. USDT/KRW).