Starting from the first token minted by Tether, let’s take a look at stablecoins evolution and how they may be used by Financial Services in a nearby future.
Author: Felice Chiro
Few years after the launch of Bitcoin, attempts were already being made at hybridizing the stability of fiat money with the security and immediacy of cryptocurrencies, creating what has become known as stablecoins. As for Bitcoin, the first-ever stablecoin has also been the one destined to become the most successful and popular: its name is Tether, its symbol ₮. Created in 2014 as Realcoin and rebranded later that year, the first USDT tokens were issued using the Omni Layer Protocol, an additional layer on top of the Bitcoin blockchain, with the peculiar promise to maintain a stable exchange rate of one US dollar to one USDT. The key to maintaining this peg was the claim that the issuer company kept reserves of as many dollars as Tethers in circulation: anyone could deposit the desired sum in exchange for an equal amount of Tether. Conversely, anyone could theoretically redeem the dollar value of their Tethers.
As soon as it became available for trading in 2015, the stablecoin quickly shone thanks to unique features: