Tether, which was launched in 2014, is a platform that utilizes blockchain technology to enable the digital use of fiat currencies. It aims to revolutionize the traditional financial system by offering a contemporary approach to money. Tether has made significant progress by providing customers with the opportunity to transact using conventional currencies on the blockchain, while minimizing the volatility and complexity usually associated with digital currencies. As the pioneer in enabling the digital utilization of traditional currencies, Tether has democratized cross-border transactions on the blockchain.
Tether tokens are digital tokens that are built on various leading blockchains, such as Algorand, Avalanche, Bitcoin Cash's Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana, and Statemine. These transport protocols comprise open-source software that interfaces with blockchains to enable the issuance and redemption of Tether tokens.
Each Tether token is fully backed by our reserves, which encompass traditional currency, cash equivalents, and potentially other assets and receivables resulting from loans extended by Tether to third parties.
The Tether platform achieves full reserve status when the total number of Tether tokens in circulation is equal to or less than the value of our reserves. Through our Transparency page, anyone can access these figures on a daily basis.
Initially, Tether was designed to utilize the Bitcoin network as its transport protocol, specifically leveraging the Omni Layer to facilitate transactions involving tokenized traditional currency. As this original iteration of Tether operates on the Bitcoin blockchain, it inherits the inherent stability and security of this well-established blockchain network.
Tether, an ERC20 token on the Ethereum blockchain, serves as a recent form of connectivity. This advancement enables the utilization of Tether tokens within Ethereum smart contracts and decentralized applications. Moreover, being an ERC20 token, it grants users the ability to send Tether tokens to any Ethereum address.
Given the availability of Tether tokens through various transport protocols, it is crucial for users to exercise caution when sending tokens to ensure they select the appropriate transport protocol for the intended destination address.
