Tether, company standing behind the USDT stablecoins, announced that it reopens account verification and direct redemption of fiat from its platform. But the service will be available only to major USDT holders.

Sell USDT directly

Tether announced that it launches a redesigned platform allowing for the verification of new customers and direct redemption of USDT, whose exchange rate is pegged to the US dollar, to fiat.

Thanks to its new partnership with the Deltec Bank, Tether will be able to launch its own wallet on its platform, through which it will be able to buy USDT tokens from their holders without contacting a third party, for example, exchanges. This service will also accelerate transfer operations with assets.

Tether promises to exchange stablecoins for US dollars in a ratio of 1: 1, but with commissions depending on the volume of the transaction.

From 27 November 2018, the new system of withdrawal and deposit commissions will be applied to all accounts.

The minimum transaction volume for redemption is $100,000 within 30 days. The withdrawal fee will be 0.4% or $1000. Tether customers are limited to one USD fiat redemption per week.

USDT emission raises questions

The US Department of Justice launched an investigation suspecting Tether and Bitfinex, the cryptocurrency exchange affiliated with it, of the manipulation of the bitcoin price in 2017. The investigation is conducted in cooperation with the Commodity Futures Trading Commission (CFTC), which sent subpoenas to Tether and Bitfinex in December 2017.

The USDT stablecoins became such a popular substitute for real US dollars on various cryptocurrency exchanges that in a few months Tether’s capitalization reached $2.7 billion, but by this November some tokens were removed from circulation. At the beginning of last year, the number of USDT tokens did not exceed $15 million. By November 2017, their number reached $500 million, and in mid-December exceeded $1 billion. In January 2018 Tether capitalization reached $2.2 billion. As of November 2018, the number of USDT tokens in circulation slightly fluctuates around $1.8 billion.