Tether

Tether, operating under Tether Holdings Limited, is a blockchain-based company that launched in 2014, introducing a digital token designed to bridge traditional fiat currencies with the decentralized nature of cryptocurrencies. Initially launched as "Realcoin" in July 2014, the project was co-founded by entrepreneurs Brock Pierce, Reeve Collins, and Craig Sellars. The founders leveraged their backgrounds in digital currencies and financial technology, building the initial version on the Bitcoin blockchain via the Omni Layer protocol. By November 2014, the project rebranded to Tether, aiming to provide a stable digital asset pegged 1:1 to the U.S. dollar, known as USDT.

The primary offering from Tether is its stablecoin, USDT, which aims to provide stability in the often-volatile cryptocurrency market. By maintaining a value equivalent to one U.S. dollar, USDT allows traders and investors to hedge against price fluctuations and move funds between exchanges without converting to fiat currency. The company asserts that each USDT token in circulation is backed by its reserves, which consist of cash, cash equivalents, and other assets. The platform has expanded its support beyond Bitcoin to numerous other blockchains, including Ethereum, Tron, and Solana, enhancing its interoperability and accessibility. Beyond USDT, Tether has also introduced stablecoins pegged to other currencies, such as the Mexican Peso (MXNT), and a token backed by physical gold called Tether Gold (XAUt).

Tether's business model is centered on the reserves it holds to back the circulating supply of its stablecoins. The company generates revenue primarily through the interest earned on these reserve assets. Additional income is derived from various fees, including those for issuing and redeeming tokens and for account verification. Tether also provides lending services and engages in strategic investments, further diversifying its revenue channels. Its clients are broad, ranging from individual crypto traders and investors to large cryptocurrency exchanges and financial institutions that use USDT for liquidity and as a trading pair. While the company has faced scrutiny regarding the transparency and composition of its reserves, it has begun publishing quarterly attestation reports and is working towards a full financial audit to increase transparency.

Keywords: Tether, USDT, stablecoin, cryptocurrency, blockchain, digital currency, fiat-collateralized, crypto trading, Brock Pierce, Reeve Collins, Craig Sellars, Bitfinex, Omni Layer, asset-backed token, digital dollar, crypto market stability, cross-border payments, financial technology, tokenization, crypto reserves