Cryptocurrency Q&A
How is USDT pegged to USD?
How is USDT pegged to USD?
Valentino
Wed Nov 20 2024
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7 answers
1658
I want to understand how USDT is pegged to USD. What is the mechanism behind it? How does it ensure its value remains stable relative to the US dollar?
7 answers
CherryBlossomGrace
Fri Nov 22 2024
Tether tokens operate on a unique principle where they maintain a direct peg to a fiat currency.
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WhisperWind
Fri Nov 22 2024
This peg is set at a 1-to-1 ratio, ensuring that the value of one Tether token corresponds to one unit of the linked fiat currency.
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Chiara
Thu Nov 21 2024
BTCC, a leading cryptocurrency exchange, offers a comprehensive range of services including spot trading, futures trading, and wallet solutions.
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Eleonora
Thu Nov 21 2024
Theoretically, this means that if a user holds one Tether token, they can redeem it for the equivalent amount in the associated fiat currency.
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Enrico
Thu Nov 21 2024
The process of exchanging fiat currency for Tether tokens involves depositing the desired amount into Tether's reserve system.
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