What is Tether?
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. Tether has made headway by giving customers the ability to transact with traditional currencies across the blockchain, without the inherent volatility and complexity typically associated with a digital currency. As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a familiar, stable accounting unit), Tether has democratised cross-border 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 interface with blockchains to allow for the issuance and redemption of cryptocurrency tokens, in our case, “Tether tokens.” Tether Platform currencies are 100% backed by Tether’s reserves. Tether tokens are redeemable and exchangeable pursuant to Tether Limited’s terms of service. The conversion rate is 1 Tether USD₮ token (USD₮) equals 1 USD.
The Tether Platform is fully reserved when the sum of all Tether tokens in circulation is less than or equal to the value of our reserves. Through our Transparency page, anyone can view both of these numbers on a daily basis.
Tether was originally created to use the Bitcoin network as its transport protocol—specifically, the Omni Layer—to allow transactions of tokenised traditional currency. Since this original version of Tether uses the Bitcoin blockchain it inherits the inherent stability and security of the longest 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.
Since 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 they are selecting the correct transport protocol.
What real-world currencies does Tether support?
Tether initially supports US Dollars (USD), Euros (EUR), and the offshore Chinese yuan (CNH). Represented by ₮, Tether platform currencies are denoted as USD₮, EUR₮, CNH₮.
Who can use Tether?
Tether enables businesses – including exchanges, wallets, payment processors, financial services and ATMs – to easily use fiat currencies on blockchains. Some of the largest businesses in the digital currency ecosystem have integrated tether.
View 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 ‘tethered’ to real-world currencies on a 1-to-1 basis and backed by our reserves.
Tether tokens are new assets that move across the blockchain just as easily as other digital currencies. Tether currencies are not money, but are digital tokens formatted to work on blockchains. Tether tokens hold their value at 1:1 to the underlying assets.
How do I know my Tether Tokens are secure?
Tether is built on top of the revolutionary and cryptographically secure open blockchain technologies and adheres to strict security and global government laws and regulations.
All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether’s reserves. As a fully transparent company, we publish a daily record of our bank balances and the value of our reserves.
Tether tokens can be securely stored, sent and received across the blockchain and are redeemable for cash (the underlying pegged asset) pursuant to Tether Limited’s terms of service.
Where can I use Tether tokens?
We want to make Tether tokens usable everywhere where you can use digital currency and in many places where digital currencies is not currently accepted.
Is Tether transparent?
Yes. Tether’s platform is built to be transparent at all times. All Tether tokens are backed 100% by Tether’s reserves.
View more transparency information.
How much does Tether cost to use?
View details on our fee information page.
Do I have to go through the KYC process?
Going through our know your customer (KYC) form and approval process is required to issue and redeem USD₮, EUR₮ and CNH₮.
In what countries and states does Tether have limited functionality?
Tether is committed to operating in a secure and transparent way, while adhering to all government compliance and regulations. This includes the regulations and economic sanctions that prohibit transactions from persons and entities connected to certain high-risk jurisdictions.
Persons domiciled or resident in the following jurisdictions are prohibited from using the Tether platform.
Cuba; Democratic People’s Republic of Korea (North Korea); Iran; 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.
U.S. persons are also restricted from using the Tether platform unless they are Eligible Contract Participants (“ECP”) pursuant to U.S. law.
What Tether features can U.S. residents access?
Unfortunately, Tether has decided to stop serving U.S. individual and corporate customers altogether. As of January 1, 2018, no issuance or redeeming 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 of the United States or its territorial or insular possessions; and,
Eligible Contract Participants pursuant to U.S. law.
Do I qualify as an Eligible Contract Participant?
An Eligible Contract Participant includes a corporation that has total assets exceeding $10,000,000 and is incorporated in a jurisdiction outside of the United States or its territories or insular possessions. This will be the principal basis upon which we will continue to do business with selected U.S. persons.