USDT stablecoin brings back direct withdrawals for USD

USDT stablecoin brings back direct withdrawals for USD
Nov 29, 2018 by Rico Wise

As of now, the digital currency company issuing the USDT stablecoin, Tether, has restored its previous business model, which allows redeeming the USDT tokens for US dollars on 1:1 ratio using its own network.

Clients that wish to cash out their USDT tokens at Bitfinex cryptoexchange will be able to perform this at market rates instead of 1:1 ratio, as well as with other dollar-pegged tokens offered at the exchange. As previously reported, USDT wanders off from its dollar peg every now and then because of market pressures, currently by the amount up to 0.05 USD.

Tether has also revealed a rate card concerning the deposits and withdrawals of USD on the network. In order to directly utilize the withdrawal system provided by Tether, customers will have to be operating with over 100,000 USD, which is the level at which they are charged 0.1 percent for a fiat deposit or the bigger of 1,000 USD (0.4 percent) for a withdrawal.

Any clients can exercise only one withdrawal of USD a week. Transaction fees for operations with 1 million USD or higher are charged at 1 percent, whereas 10 million USD and higher gets charged with 3 percent, accounting for a minimum fee of 300,000 USD. Deposit fee remains flat at 0.1 percent at all times.

Cryptotraders that seek a realization of their profits will have to find the best way to do that. There is zero fee for movement of USDT tokes in and out of the client’s official Tether wallet, therefore cryptotraders will need to design strategies to take the best advantage of the fee structures to profit the most in the process.