Tether, the controversial stable coin that has seen its share of volatility in the past few months, just announced that they had launched a newly redesigned platform that allows the verification of new customers and direct redemption of Tether to FIAT.
The company’s original mission was to be a token that allowed for the quick transfer of funds to different exchanges while maintaining the stability of the US dollar.
However, the drastic rise of token trading over the past few years made it more challenging for the stable coin to maintain is a 1-to-1 ratio with the US dollar. To mitigate this stress on the system, Tether had to rely on third-party exchanges like Bitfinex, who could handle the volume of customers and provide the liquidity needed to maintain its 1-to-1 ratio with the US dollar.
Now with a new banking relationship with Deltec, Tether is aiming to achieve their original goal of establishing a wallet that creates and redeems stable coin tokens directly on their own platform without relying on 3rd parties. Tether can now be immediately withdrawn to fiat directly from its platform.
In a move to establish more legitimacy amongst institutional investors, Tether has also catered this new platform to professionals. Starting today, all accounts will have new minimal issuance and redemption requirements equal to $100,000 and 100,000 USDT.
Tether’s new cumulative fee structure for withdrawals and deposits within a 30-day period:
The Increasing Ecosystem of Stablecoins
This move by Tether is no doubt a response to the growing competition in the stable coin market. Despite the abundance of new players in the space, Tether still maintains the #7 position of all cryptocurrencies on Coinmarketcap. This means that with a strong push to create a more transparent and trusted stable coin, Tether should have no problem maintaining its dominance over other stable coin competitors promoting a similar value proposition.
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