Launched in 2014, Tether (USDT) is one of the most well-known stablecoins in the cryptocurrency world. It was created to facilitate the use of fiat currencies digitally and has been proved to be a key part of the cryptocurrency ecosystem. It was one of the first cryptocurrencies to peg its market value to a fiat currency.

The token was originally issued on the Bitcoin Blockchain using the Omni Layer Protocol, but it has since then launched on other blockchains as well (Ethereum, EOS, Tron, Algorand, SLP, and OMG). Contemplating the original version of Tether using the Bitcoin blockchain, it inherits the intrinsic stability and security of the longest established blockchain network. Also, the token provides an alternative to proof of solvency methods by introducing a Proof of Reserves Process according to its whitepaper.

USDT currencies are promoted as being backed up by Tether’s Limited Company reserves. The tokens are redeemable and exchangeable according to Tether Limited’s terms of service. The conversion rate is 1 Tether USDT token equals 1 USD.