Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. Tether works to disrupt the conventional financial system via a more modern approach to money.
What is Tether (USDT)?
Tether ( USDT) is a cryptocurrency stablecoin pegged to the U.S. dollar and backed "100% by Tether's reserves," according to its website. 1 Tether is owned by iFinex, the Hong Kong-registered company that also owns the crypto exchange BitFinex. Tether was launched as RealCoin in July 2014 and was rebranded as Tether in November 2014.
Is tether a stablecoin?
As of January 2023, Tether was the third-largest cryptocurrency after Bitcoin ( BTC) and Ethereum ( ETH) and the largest stablecoin with a market capitalization of nearly $68 billion. 3 In 2022, Tether's USDT accounted for most of the exchanges out of Bitcoin by value. 4
Why is tether authorised but not issued?
There is a need to balance the security risks to Tether’s private keys and catering to new market demand for USD₮. By creating “authorised but not issued” USD₮, Tether limits the number of times Tether’s signers need to access their authorisation private keys, thereby reducing their exposure to security threats.
