What is Tether (USDT)?

Tether (USDT) is an Ethereum ERC-20 based token pegged to the value of a U.S. dollar and is a type of stablecoin. Tether was the world’s first stablecoin. It was initially released in 2014 under the name Realcoin by Bitcoin investor Brock Pierce, entrepreneur Reeve Collins, and software developer Craig Sellers. Originally issued on the bitcoin protocol through the Omni Layer, USDT has since been released to other blockchains. 1 USDT is designed to remain precisely equal to $1. Tether users are protected from digital asset volatility, but they’re still exposed to fluctuations in the fiat currency price to which they are pegged.

Key features of Tether:

• 1:1 ratio USD/USDT
• Stability (relative to USD)
• Available on different blockchains
• Wide range of use cases

A stablecoin is a digital asset pegged to a real-world currency, also known as fiat currency. Stablecoins are issued by centralized companies like Tether that maintain the peg by putting up collateral and running an algorithm that manipulates the stablecoin’s supply, depending on demand. Stablecoins allow exchanges to create fiat currency pairs without accepting fiat.

Tether’s issuer claims that USDT is backed by bank reserves and loans which match or exceed the value of USDT in circulation. USDT allows traders to transfer the “fiat equivalent” in value between exchanges without the need for normal fiat currency regulation. Tether converts cash into digital currency to anchor the value to the price of national currencies like the U.S. dollar, the Euro, and the Chinese yuan. Tether is a vital part of the digital asset ecosystem.

Using the AscendEX trading platform is one of the easiest ways for traders to convert fiat into USDT. AscendEX provides various fiat payment methods for users to choose from depending on their currency portfolio and geographic region. Users can also convert their digital asset holdings to USDT to protect themselves from market volatility. AscendEX employs expansive due diligence when it comes to new listing projects and offers unique trading pairs like OMI/USDT and CSPR/USDT that traders can take advantage of on the platform.

AscendEX users can convert BTMX to USDT HERE.