Mastercoin token <--> Counterparty token

Any ideas for pegging a Mastercoin token to a Counterparty token in a decentralized manner? I’m looking for a way to bring Tether (USDT) into the Counterparty ecosystem without becoming a custodian of coins/tokens to avoid KYC/AML requirements.

EDIT: Could this be accomplished with smart contracts and escrow somehow?

I’d like to see @jdog do something like this on Coindaddy, but it wouldn’t be decentralized. I don’t actually think he’s interested though…

What you could do, (but you would still have to be somewhat of a custodian still) is use a tokenly swapbot to distribute the new XCP Tether (we shall call it XTETHER) to a participant for burning actual TETHER to a BTC burn address. The problem with this would be that the TETHER would never be able to be redeemed back for USD from Tether as it would be unspendable and irretrievable, so it would forever be proven to be pegged to the XCP vesion XTETHER, but could never go back to USD

Well, what keeps the price of USDT pegged to USD is that Tether will redeem USDT for USD. There would be nothing to peg the price of XTETHER to USD.

Could USDT be escrowed via the Omni protocol and XTETHER distributed via Counterparty in response, and vice-versa?

USDT is pegged with tokens. I think USDT is asset backed with nothing. The tokens can be “built” by sending some MSC oder BTC

marthagriffin, what do you mean? The Tether company will send you USD if you send them USDT.

https://wallet.tether.to/transparency

so you see an amount of asset

http://omnichest.info/lookupadd.aspx?address=3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL

you see SPT smart property tokens. So I remeber - you can build these tokens with Mastercoins. So I see a fiat currency balance

How do the smart property tokens peg USDT to USD? Does Counterparty have anything like SPT?