Home Finance News Tether (USDT) Stable Coins are not Prehistory Concepts Because StableCoins Started with Tether

Tether (USDT) Stable Coins are not Prehistory Concepts Because StableCoins Started with Tether

tether usdt stablecoins

Paolo Ardoino, CTO of Tether during the CryptoCompare Digital Asset Summit took back to the company’s history.  He spoke about how Arbitrage was an Inspiration to The Formation of the StableCoin.

Further, Paolo Ardoino stated, you can build the infrastructure, but if you don’t have a way to settle trades at the same pace and same speed of the asset that you are trading that is really bad. 

Bitcoin, you can settle it every ten minutes.  You can deposit and withdraw it in ten minutes from an exchange, but what happens, if the other part of the settlement takes one to five days? Then that does not work clearly. So the entire idea was to create a stable court and therefore to create a cryptocurrency that could represent a synthetic version of the dollar. 

Thus, the cryptocurrency or the stable coin was visualized to be one that will have the same speed of Bitcoin.  And, of course be adopted by as many exchanges as possible, because you want to have this sort of speed in settlement.

You wanted to ensure that almost all the trading venues have the same infrastructure.  The same trading speed of course, but also use the same settlement mechanism. So that every trader that trades on one exchange or another will be able to find the same tools and they will be able to use these tools to keep the process similar.

One of the most important things in this idea was to ensure that the banks were going to be happy with the type of process being done.  Therefore, compliance measures were put in place, when these stable coins was going to be acquired or redeemed by the customers. So, that is why when you have to acquire the Tether for some you have to go through a thorough KYC process.  Of course you wanted to have a safe environment for all the participants in the Tether ecosystem.

Sydney Ifergan, the crypto expert tweeted:  “ KYC, making banks happy, compliance with norms and making a safe environment for all participants in Tether, while moving money efficiently using Tether (USDT) in the Tether Story.”

Tether (USDT) Creating Safe Environment for All Participants

So, how we could do that.  How that can be done technologically? So, at that time there was a main platform that was allowing the issuing of digital assets and it was called master coins.  So there was a software.  We wanted to build on the top of Bitcoin to ensure the security of the Bitcoin. So that was the best solution available back then and so it was the obvious choice. 

Then the other obvious choice was the choice of USD, as the main currency because all the major trading pairs were traded against the dollar.  Therefore, BTC, Litecoin, was the case back then.

So what was important for me and for us was that today everyone talks about stable coins and we get a standard.  We have hundreds of questions every day.  We have got a huge interest.  There are lot of competitors trying to build the stable coins, but everything and all the biggest journals, they chat about it as something that has been always there and stable coins seems like prehistory, but it is not like that.

“Everything Started with Tether”

Started with this group of visionaries that understood that it was a key problem in our industry and tried to solve that.

Read more about:
Share on

Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.