Knowledge Base | Redeem TETHER tokens to fiat currency (2024)

FAQs

Knowledge Base | Redeem TETHER tokens to fiat currency? ›

Redeeming Tether tokens is depositing your Tether tokens (USDt, EURt, CNHt, MXNt) to Tether.to and receiving their values in fiat currencies (USD, EUR, CNH, MXN) into a verified bank account. To redeem your tokens, you will need: A verified Tether.to account.

Tether tokens are assets that move across the blockchain just as easily as other digital currencies but that are pegged to real-world currencies on a 1-to-1 basis. Tether tokens are referred to as stablecoins because they offer price stability as they are pegged to a fiat currency.

Cryptocurrency exchanges that support Tether allow users to redeem USDT for fiat or other cryptocurrencies on their platforms. Most major exchanges that offer USDT trading pairs will enable users to redeem USDT for USD and other national currencies. These include exchanges like Coinbase, Kraken, KuCoin, and Huobi.

Go to 'Fiat and Spot' on Binance and sell USDT for USD or another available fiat money. Once sold, go to the 'Withdraw' section and select the fiat option. Choose the bank account you want to transfer, enter the amount, and confirm.

Can I exchange my USDT for USD? Yes, you can. USDT is pegged one-to-one to the US Dollar, meaning that 1 USDT can be exchanged for 1 USD. Our seamless process automatically converts USDT into USD, giving you instant access to the funds in your Xapo Bank USD account.

Can I sell Tether for USD? Yes, you can buy and sell Tether using USD on Kraken. We support a diverse network of payment processors around the world that make it easy to sell Tether.

Can you transfer USDT to a bank account? ›

To withdraw USDT to a bank account, you can transfer your USDT to an exchange that supports the withdrawal of USDT to a bank account. Then, you can initiate a withdrawal request and provide the necessary information, such as the bank account number, name, etc. The withdrawal process may take a few days to complete.

Stablecoins such as USDC and USDT are still considered to be cryptocurrency, and as such, any coin-to-coin trade or sale of these coins would be considered a capital gain/loss that must be reported to the IRS in your tax forms.

Can a bank make USDT transfers? Xapo Bank is currently the only regulated bank in the world that allows sending and receiving USDT. When Xapo Bank members send or receive USDT, it is instantly converted to US Dollars. The converted USD then automatically starts to earn 4.6% annual interest that's paid daily.

For stablecoins, the process is slightly different. All you have to do is deposit USDT or USDC to your Xapo Bank account. The funds will be automatically converted to USD and credited to your USD bank account, earning 4.6% annual interest* right away.