Tether (USDT) is a cryptocurrency founded by Brock Pierce and Craig Sellars and issued by Tether Limited, a Hong-Kong based company. Tether is a blockchain-based cryptocurrency whose crypto coins in circulation are backed by an equivalent amount of traditional fiat currencies. It is pegged against the U.S. dollar and maintains a 1-to-1 ratio with the U.S. dollar in terms of value.
3. Characteristics of Tether
The token’s peg to the USD is achieved via maintaining a sum of dollars in reserves that is equal to the number of USDT in circulation. This ensures that USDT is fully backed by cash and cash equivalents. Initially, Tether was launched as ‘RealCoin’ in July 2014, then renamed later on to USTether, and then finally, to USDT. Tether belongs to a new breed of cryptocurrencies called stablecoins. There is no allocated amount on the total supply of USDT and it is available on diverse cryptocurrency exchanges.