Tokenized, government-backed currency provider Tether Limited is partnering with Ethfinex, trading and information hub for Ethereal blockchain projects, to launch Tether ERC20 tokens on the Ethereum blockchain. Tokenized US dollars can now be exchanged on Ethereum for the first time.
Tether debuted in 2014 to offer an early option for tokenizing traditional currencies, a move allowing users to transact with fiat currencies across the exchange but without the volatility common to digital currencies.
“Following the success of our widely used US Dollar tokenization on the Bitcoin blockchain, this latest version enables interoperability with Ethereum-based protocols and DApps,” Tether cofounder Craig Sellars said. “We believe this new development will reduce the current interbank delays often involved in exchange withdrawal and allow our users access to tokenized USD – a first for the industry.”
“The number of tokens and assets being tokenized on top of the Ethereum platform is growing rapidly, with many proving disruptive to traditional business models,” Ethfinex project lead Will Harbone said. “By enabling all ERC20 compatible applications and protocols to integrate tokenized USD, we expect to see enhanced efficiency and further stability on the Ethereum network.”
Tether users deposit US dollars and soon other fiat currencies which are converted into a one-to-one backed digital currency called tether ₮. Each Tether has a name and symbol of the underlying represented asset. It is tradable and transferable as a standard ERC20 token.
TokenCard is integrating with Tether as a compatible application. It is a smart contract-powered debit card and Ethereum gateway founded in 2016. Once the card is launched TokenCard will accept the Tether ERC20, so users can use tokenized fiat currencies for normal transactions.
“The launch of Tether fiat tokens on the Ethereum network is a huge step towards mass consumer adoption,” TokenCard cofounder Mel Gelderman said. “This blurs the boundaries of what is considered a blockchain asset versus a ‘regular’ asset and will enable people to own the fiat currencies most familiar to them but in a tradeable digital form. This will make it much easier for the majority to use Ethereum powered platforms, like TokenCard.
“The option of choosing TokenCard over traditional banks becomes even easier if a national currency can be held in token form. The strength and versatility of the Ethereum blockchain enables a safe and secure means of transferring funds anywhere in the world without needing to use a bank of any kind.”
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