Tether is the creator of the crypto market’s most popular stablecoin, USDT – a token Tether claims to be backed by tangible assets – that holds its value as an equivalent to the U.S. dollar.
Stablecoins provide utility to traders that need to settle dollar costs but don’t want to incur fees cashing out tokens for fiat currency.
While USDT is by far the most popular stablecoin that the Tether Foundation issues, they also issue other tokens such as XAUT (equivalent to one troy ounce of gold) and EURT (equivalent to one Euro).
With independent assurance opinions, Tether claims that its stablecoins are always 100% asset-backed – theoretically, every USDT holder could convert to a fiat dollar with no credit crunch.
Tether seems to hold cash and cash equivalents (such as money market funds, U.S. Treasury bonds), commercial paper, corporate bonds, loans, and even other digital assets in its treasure chest, but does not disclose how they are split.
Since the launch of Tether in 2014, it has become among the most widely accepted stablecoins for transfers, trades, and swaps.
USDT is available on Abra Trade.Trade Now
Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.
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