The fintech platform is including more options to store value on the blockchain, benefiting customers and the Decentralised Conglomerate as a whole.
OpenLedger, the far-reaching range of services built on the BitShares 2.0 fintech platform, is to add support for Tether to its exchange – giving traders more options for sending and storing money without the downsides of volatility.
Cryptocurrencies are notorious for their lack of stability, with exchange rates fluctuating markedly over the course of even a day. The blockchain has proved to be an excellent way to transfer value, but a poor way to store it. This has given rise to a number of different solutions, including BitShares’ SmartCoins, which operate via a decentralised peg, and OpenLedger’s own OPEN.USD, OPEN.EUR and OPEN.CNY, which are tokens backed by funds held with the platform’s de facto fiat gateway, CCEDK.
Tether adopts a similar method. The company uses a ‘currency board’ system, similar to nations that peg their currencies to other fiat currencies. Funds are held in a fully audited, insured bank account, with an equivalent number of crypto coins issued, each representing one dollar (USDT). Tether therefore holds funds centrally, but backed tokens can be transferred on the blockchain in a completely decentralised manner. This hybrid system means that USDT – which is 100% backed by $3 million of fiat reserves – has all the liquidity of the US dollar whilst leveraging the efficiency of the blockchain for fast, low-cost transfers.
OpenLedger is now expanding its existing options – which include BitShares’ SmartCoins and its own OPEN.xxx currencies – with Tether functionality. Customers can purchase and use OPEN.USDT and OPEN.EURT, redeeming them for fiat from CCEDK at a 1:1 ratio, minus a small commission fee.
‘This is a good complement to our existing blockchain-based currencies,’ states OpenLedger CEO Ronny Boesing. ‘Volatility has always been a problem with cryptocurrencies, proving a significant barrier to adoption. Giving customers ways to store and send funds without being exposed to these exchange risks is a game changer, and positions OpenLedger very well for continued expansion as more and more companies and individuals wake up to the potential of blockchain technology.’
The development gives traders additional choices and confidence in the options for storing their funds on the OpenLedger blockchain, and has further implications for the wide range of services provided by the Decentralised Conglomerate. The DC comprises a family of companies and services that make up a mutually-beneficial ecosystem. As such its members OBITS, BitTeaser and ICOO all stand to gain from the addition of USDT.