USDT

Tether (USDT) is the world’s most widely used stablecoin, pegged 1:1 to the U.S. dollar and issued by Tether Limited, a company founded in 2014. USDT is designed to combine the stability of fiat currency with the flexibility of blockchain, enabling users to transact in dollars without relying on traditional banks.

Tether operates on multiple blockchains—including Ethereum (ERC-20), Tron (TRC-20), Solana (SPL), Algorand, and more—making it one of the most liquid and cross-chain-compatible stablecoins.

USDT tokens are backed by reserves, which Tether claims consist of a mix of U.S. Treasuries, cash, money market funds, Bitcoin, and other assets. Tether publishes attestations of its reserves on a regular basis, although critics have long called for full independent audits.

USDT plays a crucial role in the crypto ecosystem:

• It’s widely used for trading pairs on exchanges
• Enables on-chain remittances and payments
• Acts as a hedge against volatility in crypto markets
• Serves as a dollar substitute in inflation-heavy countries like Argentina and Turkey
  

Despite its popularity, Tether has faced legal and regulatory challenges:

• In 2021, it settled with the New York Attorney General for $18.5M over claims it misrepresented reserve backing
• The CFTC fined Tether $41M for misleading reserve disclosures
• It’s frequently scrutinized for potential involvement in money laundering and sanctions evasion
  

Still, Tether has grown rapidly, reporting over $140 billion in circulation and $13 billion in net profits in 2024, making it one of the most profitable companies in crypto.

‍