What is Tether USD (USDT) and how it was created
Tether originated from an idea by JR Willet, a software developer and cryptocurrency enthusiast, who was also the first to conceive the Initial Coin Offering (ICO) mechanism. Willet and his team of developers at the Omni Foundation created Tether (USDT) in 2014.
This cryptocurrency is designed to remain pegged to the dollar’s value. This peg is theoretically guaranteed by a reserve of dollars held by the issuing company. The stablecoin is collateralised, meaning it is backed by physical reserves.
On the official Tether (USDT) website, under the “Transparency” section, you can see all the company’s assets. In other words, by accessing that site area, you can understand what Tether’s reserves are composed of, how much of the money in its coffers is kept in “cash” or liquidity, and which assets, primarily US government bonds, it owns.
Why follow Tether USD (USDT)
Some crypto users choose Tether (USDT) to keep their portfolio value more stable. USDT is the most capitalised and used stablecoin in the world. Cryptocurrencies in this category allow users to take advantage of blockchain benefits while avoiding high price volatility. The price of a stablecoin (as these cryptocurrencies are colloquially called) is pegged to a fiat currency: in the case of USDT, the dollar.
In short, Tether (USDT) can be, at least for some, the answer to one of the most cited characteristics by those who view this sector with scepticism: crypto volatility.
Additional Information
To learn more about Tether (USDT), visit the official website (https://tether.to/en/), check out the documentation (https://tether.to/en/knowledge-base/), and read the whitepaper (https://assets.ctfassets.net/vyse88cgwfbl/5UWgHMvz071t2Cq5yTw5vi/c9798ea8db99311bf90ebe0810938b01/TetherWhitePaper.pdf). For any questions, you can contact the team through this page (https://cs.tether.to/).
USDT in the context of MiCA
The entry into force of European Regulation No. 2023/1114 of 31 May 2023, relating to Markets in Crypto-assets (MiCA), marked a fundamental milestone for stablecoins and the digital asset market across the entire European Economic Area (EEA). The first block of the regulation came into effect on 30 June 2024, significantly impacting stablecoins. MiCA defines stablecoins in two main categories: Asset-Referenced Tokens (ART) and E-money Tokens (EMT), for which specific requirements are outlined in Articles 16 and 48 of the regulation. Additionally, on 25 June 2024, the Italian government approved a Legislative Decree to align the national regulatory framework with the MiCA Regulation, ensuring coordination with the existing sector regulations in Italy, particularly the TUB and the TUF.
Disclaimer
This marketing communication is issued by Young Platform S.p.a., an authorised cryptocurrency exchange and a registered digital asset service provider in France (Prestataire de Services sur Actifs Numériques – Autorité des Marchés Financiers) and in Italy (Operatore Valute Virtuali (PSV1) – Organismo Agenti e Mediatori).
Young Platform S.p.a. is not responsible for such content nor for any errors contained within it or actions taken in relation to it. The content of the news and third-party reviews or opinions is provided for informational purposes only and should not be considered investment advice. This information does not constitute a recommendation to purchase or sell a particular digital asset or an investment strategy. Young Platform S.p.a. makes no warranties as to the accuracy, suitability, or validity of the information provided or any particular asset. Prices are provided for illustrative purposes only and may vary. The data presented may reflect assets traded on the Young Platform S.p.a. platform and on selected other cryptocurrency exchange platforms.
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