December 23, 2020 |James Messi
Beaxy Exchange announced the launch of a Tether (USDT) market for Bitcoin. Beaxy’s BTC-USDT trading pair will be offered alongside its existing USDC trading pair. Tether has claimed the top spot in the world of stablecoins by consistently being traded for more than $50B in daily volume. Tether currently has a market cap north of $18B. Compared to USDC, Tether generates nearly 100x more volume, making it by far the most used stablecoin.
Starting today cryptocurrency traders can use Tether (USDT) directly to buy and sell Bitcoin (BTC) on Beaxy Exchange. Along with trading, Beaxy already supports deposits and withdrawals made with Tether. The addition of Tether to Beaxy’s stablecoin lineup will allow veteran traders to move one of their preferred assets to Beaxy – one which historically drives strong volume and can be traded in over 1,000 pairs globally. As always, there are relative trade-offs between the two most popular stablecoins depending on your use case, so we decided to have both as just one more advantage provided by Beaxy’s comprehensive fiat ramp system.
What is Tether?
Tether (USDT) is a digital asset that is backed by major fiat currencies (USD, EUR, and JPY) in order to maintain price parity between the tokenized asset and the United States Dollar. At any given time, you can expect Tether to be trading at or near $1. This allows those who are buying, selling, or spending cryptocurrency to move value into a stable asset without needing a third-party financial institution to oversee the funds transfer – resulting in a faster, cheaper, and more convenient way to secure value against the United States Dollar.
Established in 2015, Tether has become the most used stablecoin across the crypto space, commanding nearly 100 times the daily volume of competing tokens like the USD Coin (USDC). A stablecoin is a cryptocurrency that is designed to mitigate volatility by pairing the cryptocurrency’s value to a basket of assets. In doing so, the cryptocurrency can maintain a pegged value. At the time of writing, Tether has a market capitalization of nearly $19 billion, making it the fourth-largest cryptocurrency by market cap. Tether’s daily volume is generally between $30 and $100 billion. For reference, Bitcoin’s daily volume is typically between $30 and $40 billion. Tether’s market capitalization implies that there are $19 billion worth of USD, EUR, and JPY held in reserve to collateralize the value of the Tether network.
The History of Tether
Tether’s predecessor, Realcoin, was presented as a startup by co-founders Brock Pierce, Craig Sellars, and Reeve Collins in July 2014. Three months after Realcoin was announced, tokens started moving into circulation on Bitcoin’s blockchain by utilizing the Omni Layer Protocol. In November of 2014, Realcoin was rebranded to the name we know it as today, Tether, and the start-up issued a statement saying that “Every Tether token is backed 100% by its original currency, and can be redeemed at any time with no exposure to exchange risk.”
At the beginning of 2015, Tether started gaining in popularity after Bitfinex, a major cryptocurrency exchange, listed the stablecoin and made it available for trading against top cryptocurrencies like Bitcoin. This helped to rapidly accelerate the growth of Tether by accomplishing two things. First, it gave those holding Tether a place to easily swap its value for something else. On the other side, it allowed those holding volatile crypto assets with a convenient mechanism to move into a stablecoin.
As it stands today, Tether is listed on more than 100 cryptocurrency exchanges and is available on more than 1,000 trading pairs, globally. As more exchanges list additional Tether pairs, the token becomes more useful. Beaxy Exchange is excited to take part in that progression and are doing so by adding Tether (USDT) against Bitcoin (BTC).
Trade BTC-USDT Today
Trading USDT tokens has never been easier. Buy, sell, or trade the most popular stable coin by creating a free account on Beaxy Exchange. Sign up today to buy, sell, or trade USDT on a secure, compliant exchange.
On average, Beaxy Exchange registrants pass KYC in five minutes or less. Your crypto assets on Beaxy are secured by Curv custody, and your USD holdings are backed by FDIC insurance up to $250,000.
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