Tether, the company issuing USDT stablecoin, announced that the platform now allows for verification of new customers and direct redemption of USDT to fiat. This announcement comes after the company confirmed The Block's earlier reports that it had established a banking relationship with Deltec Bank & Trust Limited headquartered in The Bahamas.
Starting today, Tether's customers will have a new minimal issuance and redemption requirements equal to $100,000 and $100,000 USDT, respectively. Customers are limited to one fiat redemption per week. Due to Tether’s growing pains, the company had to use Bitfinex, the closely-affiliated cryptocurrency exchange, to help redeem its customer’s USDT to dollars.
According to Tether, now that it has redesigned its platform, the company can “return to its original vision of having a wallet for creating and redeeming directly on its own platform without having to rely on a third party.” Tether's announcement ensures some confidence for its customers. Customers will no longer have to take on compound risks — relying on both Tether and Bitfinex to remain operational — in order to redeem their USDT.
The company's new fee structure is displayed in the chart below: