Tether (USDT) is a cryptocurrency with reference to fiat currencies that is issued by Tether Limited Company.
Using the technology of Blockchain, Tether allows the users to keep, send and receive digital tokens pegged to dollars, euros and yens.
Tether uses blockchain via the Omni Layer protocol. The Omni Layer protocol is the software with an open source code that interacts with blockchain, ensuring the release and redemption of crypto currency token on the basis of Bitcoin.
Tether currencies are 100% supported by the actual currency actives on a reserve account of the Tether platform. The crypto currency can be bought or exchanged for fiat currencies in accordance with the service terms of Tether Limited.
Tether USD crypto currency is presented on a range of exchanges including Poloniex, Bitfinex, Kraken, and presents a virtual analog of the US dollar. In September 2017, the Ethfinex exchange announced about the support of USDT.
In summer 2017, the plans about issuing USDT tokens on the blockchain of Litecoin were announced.
At the moment, Tether is working with US dollars and euros; in the nearest future it is planned to add operations with Japanese yens. Tethers pegged to these currencies are marked as USDT, EURT and JPYT correspondingly. The financial support of the crypto currencies is carried out by a bank trust that is working in Taiwan.
The ratio of the volume of Tether issued coins and the financial support can be seen on the platform’s website in the real-time mode. Despite the stated parity of USDT and USD, in the middle of October 2017, the crypto currency is traded for a little under one dollar.
Theoretically, USDT can be exchanged for dollars at any moment at the Tether platform itself. However, in the platform’s rules it is stated that Tether is not money and not financial tools and Tether Limited is not obliged to carry out the exchange of its tokens for fiat currencies as well as it doesn’t guarantee such exchange and protection from losses when buying, selling or buying out of Tethers.
Some experts think that in this way the company insures from possible regulatory restrictions in various jurisdictions. However, in the same way, the crypto currency may actually lose a real support because it won’t be managed to actualize the right of its exchange.
Tether holds itself as a crypto platform that is obliged to act in a safe and transparent way, following all requirements and rules at that.
This is why Tether doesn’t work in those countries and some states of the USA that do not regulate virtual currencies.
Among the countries with a limited functioning of crypto currencies are: Afghanistan, Bosnia and Herzegovina, North Korea, Ethiopia, Iran, Iraq, Laos, Syria, Uganda, Vanuatu, and Yemen. The use of crypto currencies is also limited in New York and Washington.