by JP Buntinx
Tether Inc. has announced the launch of their new Tether Euro token. These tokens are issued on the OMNI layer, and can be traded and transferred over the Bitcoin blockchain. Every EURT, as this token is called, is backed by a banking trust in Taiwan at a one-to-one ratio between deposits and coins issued.
It is not the first venture for Tether in the world of fiat-backed digital currencies. The company issued the US Dollar Tether (USDT) a while ago, which currently sees between half a million and one million of USD trading volume every single day. USDT is supported by five different exchanges around the world.
Issuing these tokens on the Omni Layer protocol is quite significant, as it allows tokens to be transferred across the Bitcoin blockchain. Due to this decentralized trading nature, transfer fees are kept to an absolute minimum. Moreover, there is no centralized custodian or third party involved in this process.
Tether Euro is designed to present a more affordable way of transferring digital assets priced in US Dollars into euros. Users can deposit Tether EUR through OpenLedger, and credited for SEPA transfers. Users of the Coinsbank Bitcoin debit card service can use EURT for card payments.
Omni Layer Foundation Board Member Patrick Dugan stated:
“We’re enabling price discovery and remittance for the world’s most liquid market over the Bitcoin blockchain, which means we can provide a very tight trading spread combined with the lowest exchange fees in the industry.”
When users trade the EURT tokens, they are charged a 0.05% fee through OmniDex. Such a fee is much lower compared to other ways to transferring and trading fiat-backed assets available today. The fees will accrue to holders of the Omni cryptocurrency automatically.
Making Tether Euro available is possible thanks to a partnership between Tether and OpenLedger. The latter company provides SEPA transfer functionality to redeem tokens. Moreover, the decentralized Bitshares-based exchange platform complements Omni Layer’s Bitcoin-based platform. It is also the primary place to trade all major assets issued using Omni, including Synereo, MaidSafe, and Tether.