- What is USDT
USDT is Tether USD (hereinafter referred to as USDT), a token based on the stable value currency USD (USD) launched by Tether. 1 USDT = 1 USD, and users can use USDT to exchange USD at a 1:1 ratio at any time. Tether strictly adheres to the 1:1 reserve guarantee, that is, for every USDT token issued, its bank account will have a fund guarantee of 1 USD. Users can query funds on the Tether platform to ensure transparency. Users can transfer USD to the bank account provided by Tether through SWIFT, or exchange USDT through exchanges. When redeeming USD, just do the reverse operation. Users can also exchange Bitcoin for USDT on exchanges.
USDT is a digital asset based on the Omni Layer protocol issued on the Bitcoin blockchain. The biggest feature of USDT is that it is equivalent to the same amount of USD. USDT is designed as a replica of fiat currency on a digital network, making it a good value-preserving token in the volatile cryptocurrency market.
Tether is a digital currency asset used for Bitcoin blockchain transactions implemented through the Omni Layer protocol. Each Tether is backed by a US dollar held by Tether, which can be redeemed through the Tether platform. Tether can be used for transfer, storage, payment, etc., just like Bitcoin or any other digital currency. Users can trade and store Tether between wallets that support the Omni layer protocol such as Ambisafe, Holy Transaction or Omni Wallet.
Tether was established to accelerate the circulation of national currencies, to provide users with a stable counterparty currency for Bitcoin, and to provide support for cash exchange and current untrusted wallet value audits. Tether provides an alternative proof of solvency through value reserve guarantees.
Users can transfer US dollars to a bank account provided by Tether through SWIFT, or exchange Tether through the Bitfinex exchange. When redeeming US dollars, just do the reverse operation. Users can also exchange Bitcoin for Tether on the above two websites. Its website claims to strictly abide by the 1:1 reserve guarantee, that is, for every Tether token issued, its bank account will have a fund guarantee of US$1.
In terms of compliance, all operations involving fiat currencies require users to complete KYC certification.
Under Tether's reserve proof system, the circulation of Tether can be easily checked on the Bitcoin blockchain through the Omnichest.info tool, and the total amount of US dollars held as endorsement is proved by publishing bank deposit balances and undergoing regular professional audits.
Anyone can view the circulation of Tether on OmniExplorer.info. The total amount of Tether at any point in time represents the total amount of US dollars in Tether's current bank account, which will be mainly responsible for users' cash purchases and acceptance operations on the Tether platform.
In order to prove that the amount of US dollars in the bank account is equal to or exceeds the amount of Tether in circulation, Tether will publish the bank account information on the public and transparent information page of its website. Professional auditors will regularly verify, sign and publish bank balance information and financial [statements] for it.
Currently, the trading volume of Tether is the largest among all stable digital currencies.
2. Features
Intuitive: USDT is equivalent to the US dollar, 1USDT=1 US dollar. Each currency = how many USDT, which is equivalent to how many dollars its unit price is.
Stability: Because Tether is backed by fiat currency, users can still trade in the blockchain asset market without being affected by the price fluctuations of most blockchain assets.
Transparency: Tether, the issuer of Tether, claims that its fiat currency storage accounts are regularly audited to ensure that each Tether in circulation is backed by a corresponding US dollar. The status of the storage account is public and can be checked at any time. In addition, all Tether transaction records will be published on the public chain.
Small transaction fees: There is no handling fee for transactions between Tether accounts or between wallets storing Tether. A transaction service fee is required when converting Tether to fiat currency.
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