What is the EURT and how does it work?

EURT is an ERC-20 token and a stablecoin created by Tether, in order to replicate the value of the EURO and create a stablecoin linked to the second largest currency in the world for use within the crypto financial system.

EURT is one of the most recent projects of the Tether company, creator of stable currencies such as USDT (whose value is linked to that of the dollar). In this case, the value of the stablecoin is linked to that of the Euro, the second largest currency in the world. With this launch, Tether wants to complement its stablecoin offer, among which are also USDT (pegged to the dollar), XAUT (anchored to the value of a troy ounce of gold).

With this, Tether seeks to become the leading provider of stablecoin solutions that securely interconnect the crypto financial ecosystem and the traditional financial world, through solutions that minimize the high volatility of cryptocurrenciesand encourage the arrival of new players to the sector, seeing that they have safe options to develop their new projects within this financial ecosystem.

Origin of EURT

EURT became a reality on December 31, 2017. It was at that time, when Tether released the first version of your ERC-20 smart contract on the Ethereum network for this token. Since then, the evolution of EURT has been maintained within networks such as Ethereum and OMNI (a Layer2 for Bitcoin), where the token has maintained a presence, especially in Ethereum, its most important development space. This makes EURT the second stablecoin created by Tether and its second market today.

However, by using smart contract technology for its creation, and more specifically, Ethereum technology (counting Solidity and EVM), EURT is a token that can be rapidly deployed on other EVM-compliant blockchain networks. This makes it easy to adopt the token in different spaces without having to significantly change how the token works.

How does the EURT work?

EURT works under the same premises as the rest of its stablecoins:

1. A private investor or an institution signs up with Tether for the purpose of applying for the issuance of EURTs. To do this, Tether performs a full KYC and AML of the applicant.
2. Next, the applicant deposits a certain amount of euros in the bank account of the Tether company, this will be the collateral used for the issuance of the EURT.
3. Once the deposit is executed, Tether Limited generates and credits the EURT tokens to the user's account. These are created in a 1:1 relationship with respect to the executed deposit.
4. Then, with the EURT funds active, the applicant can use them like any other ERC-20 token.
5. If you want to redeem the EURT tokens for EUR, you only need to return the amount necessary for Tether to destroy the EURT and execute a EUR transfer to the requesting account.

In any case, remember that EURT follows the same operating rules as any ERC-20 token, so if you get EURT tokens, you must have an ERC-20 compatible wallet (example: Dappradar) and follow the rules of use of the blockchain where the token is deployed (example: payment of commissions).

Why was the EURT token created?

The creation of the EURT token responds to various needs, among which we can highlight:

1. Carry out value transfers between the crypto and traditional financial ecosystems, minimizing losses. In other words, it does not limit you when making value transfers both within blockchain ecosystems (commissions are low) and in traditional systems.
2. It allows exchanges to maintain a high degree of liquidity and protection against the high volatility of cryptocurrencies.
3. It offers a means of protection for the investments of traders within an exchange.
4. It offers a secure payment platform in terms of volatility.
5. It enables the generation of currency exchange markets on the blockchain that can handle payments in USDT and EURT.