What is Tether?

Tether is a stablecoin and a token that is pegged to various fiat currencies. Typically when we refer to Tether we are referring to USDT, which is pegged to the United States dollar. This means that each USDT token is backed by one US dollar held in reserve.

Tether is available on a number of blockchains, including Bitcoin, Ethereum, TRON, EOS, Algorand and Solana.

Tether supports several currencies: USD, EUR, MXN and CNH. Tether tokens are denoted as USDT, EURT, MXNT and CNHT accordingly.

How does it work?

Tether works by using a system of smart contracts on the Ethereum blockchain. When someone creates a new Tether token, they must first deposit one US dollar into Tether’s reserve. This dollar is then held in reserve until the Tether token is redeemed.

Tether tokens exist as digital tokens built on several blockchains. These transport protocols consist of open source software that interface with blockchains to allow for the issuance and redemption of Tether tokens.

Every Tether token is 100% backed by their reserves, which includes traditional currency and cash equivalents, and may include other assets and receivables from loans made by Tether to third parties.

What are the benefits of using it?

There are several benefits to using Tether. It provides a way to store value in a cryptocurrency that is pegged a fiat currency. This can be useful for traders who want to avoid the volatility of other cryptocurrencies.

Tether can be used to make payments in a way that is fast, cheap, and secure. It can be used to hedge against the risk of price fluctuations in other cryptocurrencies.

We are big advocates for Stablecoins and they will feature heavily in our articles. It is worth noting that stablescoins have depegged in the past and should not be considered risk free.

What is it used for?

Tether tokens are used across the world. Both online and brick and mortar stores accept Tether tokens as a valid payment method. More importantly, you can spend Tether tokens and enjoy low transaction fees combined with price stability for purchasing some of your favorite products and services.

Various card merchents integrate with Tether, so in certain countries, you can use Tether tokens at your local ATM.

We will soon be adding a number of projects that user Tether as their main cryptocurrency whether that is in the form of payouts or deposits.