Tether reopens account verification and direct redemption of fiat from its platform
Today marks an important step in Tether’s journey, as we launch a redesigned platform allowing for the verification of new customers and direct redemption of Tether to fiat.
Tether was created October 6th 2014 in response to a clear market need to allow movements of funds quickly between different exchanges, whilst benefiting from the stability of the US Dollar. Although originally designed as trader agnostic, as the first stablecoin it was impossible to predict adoption levels and impact on the market over time.
Due to the unexpected rush of new cryptocurrency traders over the last year, Tether grew at an unpredicted rate, quickly making the initial model (enabling direct redemption of Tether to fiat through its native platform) unsustainable. In this environment, it made sense to take the stress off growing pains by flexing the existing model to harness the established infrastructure and security of Bitfinex, which was built to withstand a much larger volume of customers. Those wishing to redeem could do so 1:1 via Bitfinex with whom we had a business to business relationship.
Against this backdrop and with alternative stablecoins entering the market, Tether has maintained its stablecoin market domination, but naturally differentiated, with heavy adoption amongst professional investors.
Now, thanks to stronger banking as a result of our new relationship with Deltec, Tether is able to return to its original vision of having a wallet for creating and redeeming directly on its own platform without having to rely on a third party. This update allows the immediate withdrawal of Tether to fiat (1:1), with the ability to acquire coming soon.
New Account Requirements and Fee Structure
Designed with Tether’s professional investor audience in mind, from 27th November 2018, all accounts will have new minimal issuance and redemption requirements equal to 100,000 USD and $100,000 USD₮, respectively.
Our new cumulative fee structure for withdrawals and deposits within a 30 day period is displayed below:
* Tether customers are limited to one USD fiat redemption per week.
Through this update we are proud to offer greater flexibility and utility to Tether’s customers, and a return to our original mission for the stablecoin. Our team is working tirelessly to ensure smooth transition to this new system, and will be available to answer queries on [email protected]
The Tether Team