Tether Upgrades Stablecoin with Onchain Reserves

Tether Co-Founder Paolo Ardoino recently spoke about Stablecoin 2.0, an upcoming upgrade to the Tether stablecoin that will put its reserves onchain. This means that users will be able to verify the backing assets for each Tether token directly on the blockchain.

Ardoino stated that this change is a significant improvement over the current system, where Tether's reserves are held off-chain. By moving these reserves onchain, Tether can increase transparency and trust in the stablecoin.

Stablecoins like Tether are designed to maintain a stable value relative to a specific asset or currency, usually the US dollar. They do this by holding a reserve of that underlying asset, which is then used to back each token issued.