Tether recently announced its integration with the cryptocurrency exchange, Cryptsy, expanding its digitized dollar service.
Digital dollars on the blockchain
Tether is the first blockchain-enabled platform to allow traditional currency to be used like the US dollar. Now, it can now be used on Cryptsy allowing users to deposit US dollars, which are “tethered” and converted into a 1-to-1 fiat-backed currency called USDT.
Tether’s latest fusion with Cryptsy allows its customers to transact with dollars across the exchange without the volatility concerns related to bitcoin.
"We're excited to have such an innovative and disruptive approach to digital currency integrated with our platform," said Paul Vernon, CEO at Project Investors, Inc., the company which manages Cryptsy. He added:
"Being able to connect the Blockchain to Tether's fiat-backed digital currency provides a level of stability and reassurance not previously seen in this sector."
Tether is now live for private testing at Cryptsy:
Tether has been integrated. You can now deposit and withdrawal USD₮. @Tether_to— BigVern (@cryptsy) May 11, 2015
Cryptsy International claims more than 270,000 users with a trading volume of US$300,000 per day. Cryptsy was founded in the spring of 2013. Its mission statement is "to provide a safe and simple environment for users to trade cryptocurrencies with each other."
Easy USD deposits, withdrawals
The Tether application enables verified users to deposit and withdraw dollars via the blockchain with ease. This contrasts very differently from Cryptsy's first attempt to integrate fiat. Users in the past would have to send a check from their bank. Now, the new method has less friction and is not dependent financial institutions.
“Tether is bridging the gap by bringing familiar currencies to the blockchain,” said Reeve Collins, co-founder and CEO of Tether. “We are digitizing the dollar and giving that digital dollar access to the bitcoin blockchain.”
Tether’s innovation is to combine the benefits of the blockchain with the relative stability of fiat. Tether dollars (USDT) is backed centrally with the stability of the latter. USDT can be then moved on the Blockchain like bitcoin and 1 USDT is always equal to 1 USD. Tether asserts it is the most widespread 'backed crypto' today and claims it’s the "most secure, fastest and lowest cost way to transact with money."
Currently, only US dollars are supported although Euros and Yen are expected to be added in the future as both of these currencies are in beta. According to the company website, Tether provides unprecedented transparency since the platform is built upon the Bitcoin blockchain ledger for all to see.