Tether Whitepaper

Abstract

A digital token backed by fiat currency provides individuals and organizations with a
robust and decentralized method of exchanging value while using a familiar accounting unit. The
innovation of blockchains is an auditable and cryptographically secured global ledger. Asset­backed
token issuers and other market participants can take advantage of blockchain technology, along
with embedded consensus systems, to transact in familiar, less volatile currencies and assets. In
order to maintain accountability and to ensure stability in exchange price, we propose a method to
maintain a one­to­one reserve ratio between a cryptocurrency token, called tethers, and its
associated real­world asset, fiat currency. This method uses the Bitcoin blockchain, Proof of
Reserves, and other audit methods to prove that issued tokens are fully backed and reserved at all
times.

Tether WhitePaper

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Tether Whitepaper

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