Tether Again Lets Customers To Deposit and Withdraw Fiat

November 29, 2018 AtoZ Markets Tether Ltd enabled its customers to redeem Tether for fiat currency directly through its platform after Bitfinex posted on their page, an official appeal announcing Tether's neutrality and launching its new stable coin pairs.

Tether Regains Neutrality

Tether launced its stablecoin paired with the U.S.dollar (USDT), in October 2014 with the aim of providing fast transfers between different exchanges, while benefiting from the stability of the national currency. In August 2016, the company introduced another stablecoin pegged to the euro (EURT). According to the Tether officials the EURT token is fully backed by a banking trust in Taiwan at a 1:1 rate of deposits to issued coins. Since November 27 the users will be able to trade Tether-fiat directly on their platform through the addition of USDT/USD and EURT/EUR trading pairs.

This replaces the previous 1:1 conversion on deposits and withdrawals of the stablecoin and reflects the increasing range of choice in the stablecoin market and demands from the consumer. Bitfinex emphasized in their note that they as an exchange platform should stay "a neutral actor" in the stable coin trading market and will support Tether balance USDT and EURT in addition to the USD and EUR fiat balances which already exist. Tether consumers will be able to deposit, trade and withdraw USD and EUR in both fiat and Tether denominations. As the exchange officials noted, the changes became possible thanks to the collaboration with Tether.to platform and Deltec, which provides stronger and highly specialized, international private banking services.

USDT Account Requirements and Fee Structure

To use Tether’s withdrawal system directly, clients will need to be working with more than 100,000 dollars or 100,000 USDT. For deposits of any size you will be charged 0.1%, whilst for whithdrawals it depends on the size with a range of fee between 0.4% to 3%. Customers of any size will be able to make one fiat withdrawal per week. Transactions over $1 million will be charged a 1% fee while those over $10 million will be charged a whopping 3% – or a minimum of $300,000. 

Differently from Tether, a newcomer Paxos Standard (PAX) charges no fees for the fiat withdrawal. Paxos is a Trust company, regulated by the New York State Department of Financial Services and the first digital asset issued by a financial institution, collateralized by USD. Withdrawals happen on Paxos Standard on a regular schedule which is published by the company. They also reserve the right to change their fee structure at any time. Similarly, Circle’s USD Coin (USDC) a US dollar-backed stablecoin also does not charge a fee for withdrawals. Both aforementioned platforms have a minimum of $100 for conversions. By this time, on Binance Paxos Standard was trading at a premium against USDT, meaning that a user who wanted to convert from USDT to Pax, in order to avoid fees, would essentially do so at a 1% fee plus exchange fees.

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