Summary

Tether, originally named Realcoin, was announced in July 2014 by co-founder Brock Pierce. The announcement of it being renamed came from Tether CEO Reeve Collins in November 2014. Tether is a fiat backed token. One Tether will always equal one unit of the currency backing it. In the example of USDT, being backed by the U.S. Dollar 1USDT will always equal to USD $1. Tether was issued on the Bitcoin blockchain through the Omni Layer Protocol.

How Tether Works

Tether enables businesses including exchanges, wallets, payment processors, financial services and ATMs to easily use fiat-backed tokens on blockchains. Tether allows the user to store, send and receive digital tokens person-to-person, globally, instantly, and securely for a fraction of the cost of alternatives. The primary objective is to facilitate transactions between cryptocurrency exchanges with a rate fixed to the United States Dollar.

Key Highlights

• Tether is the most adapted digital to fiat currency
• The reserve holdings are published daily and are subject to frequent professional audits
• Built on top of open blockchain technologies