Commonly denominated as USDT, tether is a stable currency, which can be redeemed for a dollar. The need for tether came in when it was difficult for exchanges and companies to hold sovereign currency. In order to hold fiat money (sovereign currency) on behalf of the user, the exchange needed to have a license. People aren’t sure if all the tether issued is backed 100% by the US dollar or not. At least we can say safely that the USDT has changed the way we look at cryptocurrencies, ecommerce, payments, banking and even sovereign currencies.

Source: Mint December 28, 2020 03:11 UTC