What is USDT (Tether)?
Comprehensive guide to Tether - the world's largest stablecoin.
Introduction
Tether (USDT) is the largest stablecoin by market capitalization, pegged 1:1 to the US dollar. Launched in 2014, USDT was one of the first stablecoins and remains the most widely used for trading and value transfer.
USDT is issued by Tether Limited and operates on multiple blockchain networks including Ethereum, Tron, and others.
How USDT Works
Reserve Backing
Tether claims each USDT is backed by reserves including cash, cash equivalents, and other assets. However, the exact composition of reserves has been subject to controversy and regulatory scrutiny.
Multi-Chain Availability
USDT is available on many blockchains. Tron is the most popular network for USDT transfers due to low fees, followed by Ethereum and other chains.
Controversies and Risks
⚠️ Important Considerations
- Reserve transparency has been questioned by regulators
- Tether has faced legal challenges regarding its backing claims
- Consider using USDC for greater regulatory compliance
- Despite concerns, USDT has maintained its peg through various crises
Use Cases
- Trading: Most popular quote currency on crypto exchanges
- Remittances: Send dollars globally with minimal fees
- DeFi: Provide liquidity and participate in yield farming
- Value storage: Park funds during market volatility
Where to Buy USDT
USDT is available on virtually every cryptocurrency exchange and is one of the most liquid assets in crypto.
USDT vs USDC
While USDT has greater liquidity and trading volume, USDC offers more transparency and regulatory compliance. Many investors choose to hold both or prefer USDC for long-term holdings.
Learn more in our crypto investing basics guide.
Related Guides
Aloittelijoille
Kryptosijoittaminen Revolutissa
18.12.2025
15 min
Kattava opas kryptovaluuttoihin sijoittamiseen Revolutin kautta. Opi Revolutin kryptopalvelut, kulut eri tilitasoilla ja Revolut X -kryptopörssin ominaisuudet.
Aloittelijoille
Mikä on Monero (XMR)?
8.12.2025
18 min
Kattava opas Moneroon (XMR), yksityisyyteen keskittyvään kryptovaluuttaan. Opi Moneron historiasta, teknologiasta, rengasallekirjoituksista ja turvallisesta säilyttämisestä.
Jaa opasJaa
Continue Learning
Explore the world of crypto investing with our comprehensive guides.