Yep that's the idea, but most of the ones that you see now a days are just so you can slip the sheath into waist band and have the stud catch on the top of the belt, though some have punched a hole into the belt that just allows for the stud to go through to help hold the sheath steady.
I've made a bunch of those style a long time ago and the fellow that uses it wears the sheath in the manner laid out above, he also has put the hole in his belt as well. It's just a quick way to carry a knife without the added thickness of a belt loop, though on one sheath I also sewn in a strap along the back side so he had either option...

It's really best on LARGE knives, say 7" and up, smaller knives I don't think would benefit from this style of sheath.
JMVHOT...
G2
ps,
The type of studs I've used have been the kind you screw together and also the type that you hammer in a stud into the stud.
I take an end mill to relieve
a small circle of leather where the stud screw/stud will go on the inside, NOT TOO much, just a bit, then I put the stud into place and glue a section of leather across that so the blade won't rub against it...