Tether, a company utilizing cryptocurrencies to represent fiat currencies, has announced the launch of Tether ERC20 tokens on the Ethereum blockchain. This is done in partnership with Ethfinex, a trading hub for Ethereum-based projects and a spin-off of cryptocurrency exchange Bitfinex.
Craig Sellars, co-founder of Tether, said: “Following the success of our widely used US Dollar tokenisation on the Bitcoin blockchain, this latest version enables interoperability with Ethereum-based protocols and DApps. We believe this new development will reduce the current interbank delays often involved in exchange withdrawal and allow our users access to tokenized USD – a first for the industry.”
What Lies Ahead for a British Fintech Industry Outside the EUGo to article >>
“The number of tokens and assets being tokenized on top of the Ethereum platform is growing rapidly, with many proving disruptive to traditional business models. By enabling all ERC20 compatible applications and protocols to integrate tokenized USD, we expect to see enhanced efficiency and further stability on the Ethereum network,” said Will Harborne, Project Lead at Ethfinex.
Integrating with Tether as a compatible application is TokenCard, a smart-contract powered debit card and Ethereum gateway founded in 2016.
TokenCard co-founder Mel Gelderman said: “The launch of Tether fiat tokens on the Ethereum network is a huge step towards mass consumer adoption. This blurs the boundaries of what is considered a blockchain asset versus a ‘regular’ asset and will enable people to own the fiat currencies most familiar to them but in a tradeable digital form. This will make it much easier for the majority to use Ethereum powered platforms, like TokenCard. The option of choosing TokenCard over traditional banks becomes even easier if a national currency can be held in token form. The strength and versatility of the Ethereum blockchain enables a safe and secure means of transferring funds anywhere in the world without needing to use a bank of any kind.”
“We believe this development will not only open up the world of cryptocurrencies to more mainstream consumers, but also set the standard, and encourage other companies to be more innovative and accessible in their product and service offering at this pivotal time for money and payments,” concluded Sellars.