The leading cryptocurrency trading platform Kraken has expanded its offering by including support for a new crypto asset —Tether (USDT). The platform announced the new development in its latest blog post.
The inclusion of USDT now makes it possible for cryptocurrency community members to trade and exchange the digital token for USD. Tether is a cryptocurrency built over Bitcoin blockchain. The crypto-platform uses Omni Protocol, and the value of USDT cryptocurrency is pegged at 1 USD per unit. The value of USDT is 100% backed by reserves maintained by Tether project which makes it a stable cryptocurrency.
According to Kraken, the inclusion of USD backed Tether to the platform now offers an easy way for the users to fund their trading accounts with money. USDT is easy to exchange, thanks to the stable value. Once a user transfers tether to the account, he/she can exchange it to USD and the resulting funds can be used for buying and selling other crypto assets available on the platform. As quoted in the blog,
“Adding tether to Kraken’s platform means that clients now have a new digital asset that can be quickly transferred to fund their accounts and easily exchanged for USD in order to access Kraken’s USD-based markets.”
Also, Kraken users are free to place “buy” and “sell” orders for USDT at any price they wish. Based on the demand and supply on the order books, the trades will be executed. However, unlike other cryptocurrencies, USDT traders can be assured that the minimum value of the tokens would be fixed at $1. However, while engaged in USDT/USD trading, they have to consider a nominal trading fee charged by Kraken which ranges between 0% to 0.2%.
“As with all markets on Kraken, buyers and sellers are free to set their own prices. Market price for buyers is determined by the sell orders currently on the order book, and the market price for sellers is determined by the buy orders currently on the book.”
In the blog post, Kraken has provided the trading fee breakup based on the volume of USDT/USD trades. Kraken, by constantly adding new assets is slowly turning out to be the go-to place for all crypto-related trading needs.
Ref: Kraken Blog | Image: NewsBTC