Launched in 2014, Tether is a blockchain-enabled platform designed to make it easy to use fiat currencies digitally. Tether works to disrupt the conventional financial system through a more modern approach to money.
Tether has advanced by offering customers the ability to transact with traditional currencies across the blockchain, without the inherent volatility and complexity normally associated with a digital currency. As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a stable, familiar accounting unit), Tether has democratized international transactions across the blockchain.
How does Tether work?
Tether tokens exist as digital tokens built on bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP and OMG blockchains. These transport protocols consist of open source software that interfaces with blockchains to allow the issuance and retrieval of cryptocurrency tokens, in our case, “binding tokens”.
Tether platform coins are 100% backed by Tether reserves. Tether tokens are redeemable and exchangeable in accordance with Tether Limited's terms of service. The conversion rate is 1 Tether USD ₮ token (USD ₮) is equal to 1 USD.
The Tether Platform is fully reserved when the sum of all outstanding Tether tokens is less than or equal to the value of our reserves. Through our Transparency page, anyone can view these two numbers daily.
Tether was originally created to use the Bitcoin network as its transport protocol — specifically, the Omni Layer — to allow traditional tokenized currency transactions. As this original version of Tether uses the Bitcoin blockchain, it inherits the inherent stability and security of the older, established blockchain network.
Tether on the Ethereum blockchain, as an ERC20 token, is a newer transport layer, which now makes tether available in Ethereum smart contracts or decentralized applications on Ethereum. As a standard ERC20 token, it can also be sent to any Ethereum address.
As Tether tokens are currently available using different transport protocols, when users send Tether tokens to other addresses, they need to carefully check the destination address to confirm that they are selecting the correct transport protocol.
Which currencies are supported by Tether?
Tether initially supports US Dollars (USD), Euros (EUR) and Offshore Chinese Yuan (CNH). Represented by ₮, Tether platform currencies are indicated as USD ₮, EUR ₮, CNH ₮.
Who can use Tether?
Tether allows businesses — including purses, wallets, payment processors, financial services and ATMs — to easily use fiat currencies in blockchains. Some of the biggest companies in the digital currency ecosystem have integrated tether.
See industry supporters.
Individuals can also use tether-enabled platforms to transact with Tether tokens.
How does Tether protect me from cryptocurrency volatility?
Because they are anchored or 'tied' to fiat currencies on a 1 to 1 basis and backed by Tether reserves.
Tether tokens are new assets that move across the blockchain as easily as other digital currencies. Tether coins are not money, but digital tokens formatted to work in blockchains. Tether tokens maintain their 1:1 value for the underlying assets.
How can I know if my Tether Tokens are secure?
Tether is built on revolutionary, cryptographically secure open blockchain technologies and adheres to strict global government and security laws and regulations.
All Tether tokens are indexed 1 to 1 with a matching fiat currency (eg 1 USD ₮ = 1 USD) and are guaranteed 100% by Tether reserves. As a fully transparent company, we publish a daily record of our bank balances and the value of our reservations.
Tether tokens can be securely stored, sent and received via the blockchain and can be redeemed for cash (the underlying linked asset) in accordance with Tether Limited's terms of service.
Where can I use Tether tokens?
We want to make Tether tokens usable everywhere you can use digital currency and in many places where digital currency is currently not accepted.
Is Tether transparent?
Yes. The Tether platform is built to be always transparent. All Tether tokens are 100% guaranteed by Tether reservations.
Do I have to go through the KYC process?
You must go through our Know Your Customer (KYC) form and approval process to issue and redeem USD ₮, EUR ₮ and CNH ₮.
In which countries and states does Tether have limited functionality?
Tether is committed to operating safely and transparently while meeting all government regulations and compliance. This includes economic regulations and sanctions that prohibit transactions by persons and entities connected to certain high-risk jurisdictions.
Persons domiciled or residing in the following jurisdictions are prohibited from using the Tether platform.
Cuba; Democratic People's Republic of Korea (North Korea); Will; Pakistan; Singapore; Syria; the Government of Venezuela; and Crimea. Verified Users' access to the Tether platform will be restricted while they are in these restricted jurisdictions.
Americans are also prohibited from using the Tether platform unless they are Eligible Contract Participants (“ECP”) under US law.
What Tether features can US residents access?
Unfortunately, Tether decided to stop serving US individual and corporate customers. As of January 1, 2018, no issuance or redemption services will be available to these users.
Exceptions to these provisions may be made by Tether, in its sole discretion, for entities that are:
Established or organized outside the United States, or its territorial or island possessions; and,
Eligible Contract Participants under US law.
Do I qualify as an eligible contract participant?
An Eligible Contract Participant includes a company with total assets in excess of $10.000.000 and is incorporated in a jurisdiction outside the United States or its territories or island possessions. This will be the main basis on which we will continue to do business with select US individuals.