Tether and Ethfinex plan to release the Tether ERC20 token on Ethereum starting September 18. The token converts US dollars into a tradeable form on the Ethereum blockchain, letting users move dollars
Tether and Ethfinex plan to release the Tether ERC20 token on Ethereum starting September 18. The token converts US dollars into a tradeable form on the Ethereum blockchain, letting users move dollars around decentralized applications and protocols without touching the traditional banking system.
Tether launched in 2014 as a platform for converting fiat currencies into blockchain tokens. The company originally deployed on the Omni Protocol. Tether issues each token backed by a real dollar sitting in the company's reserve, a one-to-one guarantee behind every unit in circulation.
Craig Sellar co-founded Tether. He framed the Ethereum rollout as a solution to settlement delays that slow down exchange operations. "The new development will reduce the current interbank delays often involved in exchange withdrawal and allow users access to tokenized USD," Sellar said. He called the move "a first for the industry."
Ethfinex launched in August as an iFinex subsidiary (iFinex owns Bitfinex). The platform serves as both a decentralized exchange and a community hub for Ethereum developers. The company will incorporate Tether ERC20 as its primary mechanism for accepting deposits and executing fiat-backed trades.
The ERC20 standard, created by developers and finalized this week, governs how tokens launch on Ethereum. Will Harborne leads Ethfinex. The rapid growth of tokenized assets on the network creates need for stable-value tools, he argued. "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," Harborne said. "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."
Harborne views Tether as fundamental infrastructure. "We see Tether as a crucial piece of public infrastructure for the Ethereum community and associated DApps. We are extremely excited about the possibilities this will enable for many other projects in the Ethereum ecosystem," he said.
TokenCard manufactures a debit card powered by smart contracts. It converts cryptocurrency holdings into everyday purchasing power. The company will accept Tether ERC20 when it launches. Co-founder Mel Gelderman frames the token's arrival as a major step toward broader 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," Gelderman said.
