Popular cryptocurrency startup, Tether, announced resuming its service for the direct redemption of the USDT tokens to fiat. Furthermore, the announcement reads that Tether will start accepting fiat deposits. Thus the existing customers can purchase the USDT stablecoins directly from the platform.
Details Regarding the Updated Tether (USDT) Platform
Tether describes this as the “new vision” with a major redesign of its platform to verify its new joining customers. They call the platform a comeback 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.”
The update shows that users can directly redeem their token on the Tether.to platform at a USDT to fiat ratio of 1:1. Tether charges zero-fees for all the deposits and withdrawals while fiat-transfers will have some commission. However, the caveat is that the platform has put minimum issuance and redemption limits at $100,000 each.
Bitfinex Adds Two Tether-fiat Trading Pairs
In another announcement, crypto exchange Bitfinex announced the addition of two new Tether-fiat trading pairs. These two trading pairs include the Tether Dollars (USDT) and Tether Euros (EURT). This means that Bitfinex customers can now avail direct fiat-to-Tether trading service for USDT-USD and EURT-EUR.
Bitfinex describes this move as “continuing [its] heritage of providing a neutral, coin-agnostic platform.” Furthermore, it mentions that “All existing USD balances on Bitfinex will remain fiat and unaffected by this change.”
Controversial and Shady Operations
This year, the startup is appearing controversial over its alleged non-transparent relationship with the Bitfinex exchange. To note, both Bitfinex and Tether share the same management and shareholders.
USDT facing the allegations that it was responsible for last year Bitcoin price pump. The allegations suggested that Tether provided Bitfinex with additional USDT tokens without actually backing them with physical USD.
A number of banking institutions have withdrawn their affiliation with the startup due to failure to do a full audit. In the middle of the year, Tether was facing a hard time almost going into bankruptcy.
Moreover, in its whitepaper, it promised a direct redemption facility but failed to keep the promise after last year’s hacking incidence. Customers were thus unable to convert USDT to fiat and vice versa.
Tether later tried to hide its inefficiency by saying that customers can redeem it over other exchanges. A majority of the customers switched to Bitfinex for USDT trading. However, there too, customers faced issues with slow withdrawals.
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