Tether (USDT) is the largest stablecoin by market capitalisation, launched in 2014 and designed to hold a value of one US dollar. It is issued across many blockchains, and supply expands or contracts as tokens are minted against deposits or redeemed.
Launched
2014
Created by
Tether Limited
Consensus
Issued across multiple blockchains
Supply
Elastic — minted and redeemed against reserves
Tether key facts
Largest stablecoin by market cap and typically the highest-volume asset in crypto trading.
Issued natively on Ethereum, Tron, Solana and other chains.
Backing is reported in quarterly attestations, with reserves largely in US Treasury bills.
Reserve composition and audit standards have been a recurring subject of regulatory scrutiny.
How Tether works
Tether mints new USDT when clients deposit dollars and burns tokens on redemption. The peg holds through this redemption mechanism plus arbitrage: if USDT trades below a dollar, buying and redeeming at par is profitable, which pushes the price back.
What USDT is used for
Trading pair and settlement asset across exchanges
Dollar exposure in regions with limited banking access
Moving value between exchanges without touching the banking system
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