Tether recently announced its integration with the Cryptsy cryptocurrency exchange to expand its digitized dollar service.
Digital dollars on the blockchain
Tether is the first blockchain-enabled platform that enables traditional currencies such as the US dollar to be used. Now it can be used on Cryptsy, allowing users to deposit US dollars which are “pegged” and converted into a 1-to-1 fiat-backed currency called USDT.
Tether’s latest merger with Cryptsy enables its customers to trade dollars across the exchange without the volatility concerns associated with Bitcoin.
“We are excited to have such an innovative and disruptive approach to digital currency incorporated into our platform,” said Paul Vernon, CEO of Project Investors, Inc., the company that manages Cryptsy. He added:
“The ability to connect the blockchain to Tether’s digital fiat-backed currency provides a level of stability and security never seen before in the sector.”
Tether is now live for private tests at Cryptsy:
Tether has been integrated. You can now deposit and withdraw USD ₮. @Tether_to
– BigVern (@cryptsy) May 11, 2015
Cryptsy International claims more than 270,000 users with a trading volume of $ 300,000 per day. Cryptsy was founded in spring 2013. Its mission statement is to “provide users with a safe and easy environment for trading cryptocurrencies”.
Easy USD deposits, withdrawals
The Tether application enables verified users to easily deposit and withdraw dollars through the blockchain. This is in contrast to Cryptsy’s first attempt at integrating Fiat. In the past, users had to send a check from their bank. Now the new method has less friction and is not dependent on financial institutions.
“Tether bridges 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 this digital dollar access to the Bitcoin blockchain.”
Tether’s innovation is to combine the advantages of blockchain with the relative stability of fiat. Tether Dollar (USDT) is centrally hedged with the stability of the latter. USDT can then be moved on the blockchain like Bitcoin and 1 USDT always corresponds to 1 USD. Tether claims it is the most widely used “assisted crypto” today and claims it is the “safest, fastest and cheapest way to trade money”.
Only US dollars are currently supported, although the euro and yen are expected to be added in the future as both currencies are in beta. According to the company’s website, Tether offers unparalleled transparency as the platform is built on the Bitcoin blockchain ledger for all to see.
Tether has also recently integrated with other platforms, including Shapeshift.io, Gocoin, and BitFinex.