With the creation of tether and other stablecoins, it’s fast and straightforward to swap any cryptocurrency for tether, while changing a cryptocurrency to cash would take days and price transaction charges. This creates liquidity for change platforms, creates no-price exit methods for traders and provides flexibility and stability to investors’ portfolios.

I simply bought some US Dollars right this moment. I try this many days. But the dollars I purchased in the present day are crypto property, like Bitcoin and Ethereum. These US Dollar belongings are referred to as USDC and they’re issued by an industry consortium known as Centre, led by Circle and our portfolio firm Coinbase. I expect many different firms will be part of the Centre consortium in the coming months and years.

The coin is governed by the Centre Consortium, which oversees the technical and monetary requirements for the stablecoin and ensures that there’s transparency around a real 1-to-1 backing. Because of this for every USDC created, $1 of USD is held in reserve in the type of US Dollars and other cash equivalents.