What are Tether tokens and how do they work? (2024)
1 April 2024 - Tether, the largest company in the cryptocurrency industry, announced a significant security update today. The company underwent the System Organization Control (SOC) 2 Audit Type 1, marking the initial phase of achieving the highest level of security compliance an organization can demonstrate. The SOC 2 Type 1 audit examination is a gold standard in security compliance developed by the American Institute of Certified Public Accountants (AICPA), and underscores Tether's position as an industry leader committed to delivering a secure experience.
SOC 2’s criteria are based on five key ‘trust service principles’:
Security: Implemented measures such as firewalls, intrusion detection, and enhanced authentication protocols to safeguard customer data.
Availability: Focuses on maintaining a reliable and active network, while also addressing efficiency in problem resolution.
Processing Integrity: Focuses on whether systems achieve their purpose, delivering accurate data at the right price and at the right time.
Confidentiality: Restricts data access and disclosure to authorized individuals or organizations, with a strong emphasis on encrypting data during transmission.
Privacy: Ensures responsible collection, use, retention, and disclosure of personal information.
The SOC 2 Type 1 Report is based on Security, Availability, Processing Integrity and Confidentiality, ensuring that Tether had robust IT control measures in place to make sure their systems were safe, could be accessed when needed and kept information private. It examines measures such as firewalls, intrusion detection, and enhanced authentication for customers, along with network reliability and problem resolution speed.
“This compliance measure assures our customers that their assets and data are managed in an environment meeting the highest standards for data protection and information security,” said Paolo Ardoino, Tether’s CEO. “This independent validation of security controls is vital for Tether, demonstrating our commitment to being the world’s most trusted and compliant stablecoin."
Tether constantly updates its security strategy, focusing on leading with innovative technology, transparency, and accountability to its stablecoin users. Its commitment to completing the SOC 2 Type 1 audit reaffirms its dedication to ensuring strong security measures for token holders. This proactive step aligns with Tether's commitment to transparency, building trust within the user community, and engaging constructively with regulatory authorities.
Tether has also committed to undergo the SOC 2 examinations annually to ensure that its operations and security practices are consistently operated to the highest standards. In 2024/25, the company aims to achieve the SOC 2 Type 2 Certificate, which evaluates the criteria of Security, Availability, Confidentiality, Privacy and Processing Integrity and assesses the operating effectiveness of Tether's internal controls over a period of 12 months.
To learn more about Tether assurance reports and attestations please visit the Tether transparency page.
Tether tokens are assets that move across the blockchain just as easily as other digital currencies but that are pegged to real-world currencies
world currencies
In international finance, a world currency, supranational currency, or global currency is a currency that would be transacted internationally, with no set borders.
Tether tokens offer the stability and simplicity of fiat currencies coupled with the innovative nature of blockchain technology, representing a perfect combination of both worlds.
Can I make money on Tether? Yes, you can make money on Tether by earning interest through crypto lending platforms. Holding Tether (HODLing) can also be profitable, especially with platforms offering competitive interest rates.
What is a tether? A tether (top strap) anchors the top of a car seat (child safety seat) to the vehicle (A). Most forward-facing car seats sold in Canada and the U.S. come with tethers. Tethers are also used with safety vests and seats for children over 40 pounds who need extra support.
Market Risk: The value of USDT is pegged to the US dollar, but if there is a loss of confidence in the stablecoin or if the underlying company fails to maintain the peg, the value could fluctuate. Regulatory Risk: Regulatory changes or government actions affecting stablecoins can impact their usage and value.
Withdrawing USDT from Binance to a bank account is done through the following process: Go to 'Fiat and Spot' on Binance and sell USDT for USD or another available fiat money. Once sold, go to the 'Withdraw' section and select the fiat option. Choose the bank account you want to transfer, enter the amount, and confirm.
Xapo Bank is currently the only regulated bank in the world that allows sending and receiving USDT. When Xapo Bank members send or receive USDT, it is instantly converted to US Dollars. The converted USD then automatically starts to earn 4.5% annual interest that's paid daily.
USDT is a pegged cryptocurrency, meaning its value is only as volatile as that of the U.S. dollar. Other examples are USD Coin (USDC), Binance USD (BUSD), and Dai (DAI). One of the benefits of tethering is that it allows investors to easily move money between cryptocurrency markets and the traditional financial system.
USDT is generally considered safe for investment, especially as a means to hedge against the volatility of other cryptocurrencies. However, like any investment, it comes with risks, and it's essential to consider Tether's efforts to maintain transparency and regulatory compliance.
The main concern surrounding Tether is the lack of transparency the company's reserves have. ...
Due to the fact that Tether is managed by a single entity, it is vulnerable to the same risks as other centralized systems, including hacking, fraud, and government interference.
Acquiring Tether tokens is sending fiat currencies and receiving Tether tokens. You can complete wire deposits (USD, EUR, CHN or MXN) and receive the corresponding amount of Tether tokens (USDt, EURt, CNHt or MXNt) to an address of your choice. The minimum acquisition amount is 100,000 USD or equivalent.
All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether's reserves. As a fully transparent company, we publish a record of the current reserve assets.
Firstly sign in to your Tether.to account, then click on Redeem.Fill in the total amount you wish to redeem, select the Tether tokens, the bank and click the Confirm button.
The circulation of Tethers can also be tracked and reported via the protocol. Tether's ledger is stored on the Bitcoin blockchain thanks to Omni, and the Omni Explorer allows users to view their verified transactions there.
Acquiring Tether tokens is sending fiat currencies and receiving Tether tokens. You can complete wire deposits (USD, EUR, CHN or MXN) and receive the corresponding amount of Tether tokens (USDt, EURt, CNHt or MXNt) to an address of your choice.
Introduction: My name is Merrill Bechtelar CPA, I am a clean, agreeable, glorious, magnificent, witty, enchanting, comfortable person who loves writing and wants to share my knowledge and understanding with you.
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