Tether was developed by Tether Limited (Hong Kong) as a replacement of dollars on those exchange platforms which do not allow withdrawal of funds in fiat currencies.
Tether was developed by Tether Limited (Hong Kong) as a replacement of dollars on those exchange platforms which do not allow withdrawal of funds in fiat currencies.
It is tethered to dollar/euro with minor fluctuations ( most frequently from 0.99 to 1.01). As a result, funds can be added to the exchange platform in Bitcoin, purchase USDT or EURT as a replacement of common fiat currency and proceed to trade btc/usd eth/usd, for example.
Contrary to other cryptocurrencies that do not have physical support, each USDT is backed by a real US dollar. Tether Ltd has a specialized reserve for this purpose.
This is also the reason for various withdrawal options of USDT / EURT in other payment systems.