You Can Now Trade “Tokenized” U.S. Dollars on the Ethereum Network
This could change how banking works.
Dollars to Tokens
Token currency provider Tether is bringing tokenized USD to Ethereum, the second largest cryptocurrency after Bitcoin. This means that users can turn their regular currency into tokens, which makes using it on the exchange simpler and more predictable.
Tether, in partnership with the Ethereum trading and information community hub Ethfinex, announced the launch of ERC20 Tether tokens on September 11th, allowing tokenized USD to be exchanged on the Ethereum network, and hopefully eliminating the delays people often experienced when dealing with businesses and banks.
“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,” said Project Lead at Ethfinex Will Harborne. “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.”
After depositing their US dollars, Tether users will see their money converted into a digital currency known as “Tether,” symbolized as “₮.” Each Tether will have a name and symbol attached that represents the asset, which can then be traded or transferred as an aforementioned ERC20 token. In the future, currencies like euros and yen will also be supported.
Following the announcement, TokenCard revealed it will also begin supporting Tether, allowing users to use their tokenized currency just as they would use traditional money with a Token debit card.
Changes to Society
Cryptocurrencies are often seen to be troublesome or too unpredictable to rely on, but Tether and Ethereum’s new endeavor seeks to change that. Ethfinex stated a key part of this new partnership meant developing currencies that could easily be used in everyday scenarios, such as paying bills or salaries.
“We believe this development will not only open up the world of cryptocurrencies to more mainstream consumers, but also set the standard, and encourage other companies to be more innovative and accessible in their product and service offering at this pivotal time for money and payments,” said Tether co-founder Craig Sellars.
Aside from cryptocurrencies, blockchains are also changing the world in a number of ways, continuing to show that it can be used for much more than just currency. So far, it has been used to change the way we vote, improve air travel, and may soon impact the entertainment industry. If companies like Tether, Ethfinex, and Ethereum get their way, the way we think and use money could soon be changed forever.
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