In 2008, a momentous occasion took place with the release of the Bitcoin (BTC) white paper. With author Satoshi Nakamoto explicitly calling for the deconstruction of financial intermediaries, regulators around the world were put on alert, particularly as Wall Street faced one of its biggest crises since the 1930s. While Bitcoin’s lack of a stable pricing mechanism has prevented it from becoming a commonly accepted medium of exchange, Tether (USDT) — one of the earliest stablecoins, developed by Tether Ltd. — has addressed this.
In 2014, Tether Ltd. issued its namesake stablecoin, Tether. As the earliest U.S. dollar-backed stablecoin, Tether has claimed that each unit of USDT is 100% backed by its dollar reserves. After China cracked down on crypto exchanges in 2017, traders encountered difficulties when trading crypto assets with fiat currencies. Thus, Tether was initially used as a value exchange vehicle. However, Tether became the most accessible entry point for traders after China further tightened its cryptocurrency ban that year, thus driving rapid growth in one of the key assets in the cryptocurrency market.
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