By
Benjamin Njiri
April 23rd, 2024
Tether’s stablecoin platform is coming back: it will be available for fiat deposits and redemption of fiat currency to USDT once again.
Though a lot of members of the cryptocurrency community have already decided that Tether is not going to come back to business, it is absolutely not true. The company is reopening its stablecoin platform for fiat deposits and USDT redemption.
Nevertheless, this move is not a sign of a new vision, it is just a return to original parameters that were initially set.
A Little Bit of History
More than a year ago, in April 2017, it was announced that Tether’s Taiwanese banking partners had quitted its cooperation with banking services provider Wells Fargo. As a result, deposit and withdrawal offerings for the stablecoin’s holders were restricted.
Half a year later, in November, an impressive amount of 30,950,010 USDT was taken from the Tether treasury wallet which meant that the 1-to-1 redemption of fiat currency to USDT had been brought to an end.
Since that time a year has passed and now it has been officially revealed that Tether has taken a decision to re-launched the account verification and the redemption of USDT back to fiat.
Current Scenario
Tether’s platform has been reactivated. Now new customers have an opportunity to pass verification and those who are already registered will be able to buy USDT directly.
The company behind the platform has established cooperation with a Bahamas-based bank called Deltec thanks to which USDT-fiat operations will be possible once again.
Nevertheless, there is one important peculiarity of this new move. The minimum requirements for withdrawals and deposits are set at $100,000 and 100,000 USDT, which makes clear that the service won’t enjoy huge popularity among retail investors.
That’s why the company says that now their services are targeted at the audience of professional investors who can and need to deposit hundreds of thousands of dollars or even more at a time.
The platform will take fees ranging from 0.4 percent to 3 percent that will vary depending on the size of a deposit or withdrawal. Moreover, not more than one USD fiat redemption per week will be allowed.
The team has published an official announcement which states:
“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.”
As Coinspeaker has reported, crypto exchange Bitfinex and Tether, that share the management team, are accused of artificial increasing of Bitcoin’s price with the help of the stablecoin. Currently, the authorities are conducting investigations. Nevertheless, the company denies all the allegations.
At the same time, it has been revealed that crypto exchanges platforms Bitfinex and Ethfinex are adding Tether-fiat trading pairs. Now both exchanges will offer USDT-USD and EURT-EUR pairs.