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USDT, symbol $USDT, also called Tether, is a US dollar based stablecoin issued by a company called Tether Limited Inc. that is transferred inside various blockchains such as Ethereum.
A stablecoin is an ERC-20 token inside a blockchain that is pegged to a national or fiat currency such as the US dollar, in the case of $USDT.
The token is convertible into real US dollars that the firm holds in traditional investments.
How does USDT work?
1. Individuals, merchants, hedge funds, or exchanges open KYC accounts at Tether and send US dollars to the company’s bank account.
2. When the company receives the US dollars, then it issues USDT tokens, worth 1 to 1 to the dollar, and sends them to the blockchain address of its customers.
3. As the issued USDT tokens are the ERC-20 standard tokens in blockchains as Ethereum, they can be used to make payments, transfers, and to trade other tokens or NFTs.
4. Any blockchain user may open a KYC account on Tether and redeem USDT by sending them to Tether’s address on the blockchain.
5. When Tether receives the tokens, they destroy the tokens from circulation and send the equivalent amount of US dollars to the user’s bank account.
Does Emerald support USDT?
Yes, Emerald supports several stablecoins, including USDT.
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