Fiat-collateralized stablecoins like Tether have surged in popularity, with a flood of new stablecoins entering the market. The centralized design of Tether is seen as an important hedge against the volatility of crypto assets since the fiat collateral held in reserve will continue to retain its value should the crypto markets collapse.
There is a growing trend towards transparency in the stablecoin market, and Tether’s reserves are published daily to assure investors that the backing of Tethers is at least equivalent to or more than the circulating supply.
KYC process approval is also required to issue and redeem Tethers in USD or EUR.