Tether, creator of a USDT token claimed to be backed by the U.S. dollar, has been a hot topic of conversation lately to say the least. The company has been very successful so far issuing tokens to individuals and exchanges, but many skeptics are worried the digital currency is not backed by real fiat. Skeptics aside, just recently the company has announced the issuance of a new fiat backed tether called EURT that will represent euros with ERC20 standard compatibility.
Also read: French Entrepreneur’s Case to Overturn the Bitlicense Dismissed
Tether Issues Digital Fiat
Tether (USDT) is a digital asset that’s been issued over the Bitcoin core blockchain through the Omni Layer protocol. The organization that created USDTs is called Tether Limited, and according to the firm, tether tokens can always be redeemed 1:1 with the U.S. dollar through the company’s platform. Tether has been around for a couple of years now and has been very successful as a wide variety of cryptocurrencies had a phenomenal year of growth. Some skeptics believe the growth has been unnatural and tether has been accused of ‘pumping’ the entire digital asset ecosystem. These critics think there are no real dollars behind the USDT system.
Meet the ‘EURT’
Meanwhile, Tether Limited is now creating a euro tether (EURT) that is issued over the Ethereum blockchain and will be compatible with the ERC20 standard.
“As the first platform to facilitate the transfer of fiat backed currencies over a blockchain network, Tether has made headway by giving customers the ability to transfer value across the blockchain without the inherent volatility and complexity typically associated with a digital currency,” explains Tether Limited.
Following the widespread success of our Bitcoin-based USD Tether, issued via the Omni Layer Protocol, we have today launched and issued both US Dollars and Euros as Ethereum-based Tether, compatible with the ERC20 standard.
Several of Tether Limited’s Partner Exchanges Are Working to Integrate EURTs
The new system allows for the transfer of both tokenized USD and EUR says the firm. Additionally, the company explains that the protocol will be interoperable with Ethereum network applications and pegged assets.
Another reason for the ERC20 compatible tethers means transactions will have “much lower network fees and much faster confirmation times.” Tether Limited believes this will create far more liquidity and exchange arbitrage.
“Several partner exchanges are already working to integrate the new tokens,” reveals the firm.
EURT Contracts Get Two Codebase Audits
Alongside this, the company says it has completed two audits of the codebase and contracts using Zeppelin Audits and Phil Daian as third-party auditors. The inspections say there were no critical or high severity issues found and recommended some medium severity solutions. Zeppelin had updated the report and stated:
The Tether team has followed our recommendations and updated the Tether token contract.
Phil Daian’s audit is 20 pages long and concludes that if the company follows the recommendations, the ERC20 Tether contracts “will launch in a well tested, secure state.”
What do you think about Tether Limited creating a euro token? Let us know your thoughts on this subject in the comments below.
Images via Shutterstock, the Tether logo, the Tether Limited blog and Pixabay.
Tired of those other forums on the subject of Bitcoin? Check out our forums!