Tether (USDT)

Tether, known by its ticker USDT, is a stablecoin designed to hold a value of one US dollar. It is issued by a company called Tether, which creates new tokens when customers deposit dollars and removes them when customers redeem. USDT is the largest US-dollar stablecoin by market value.

USDT is meant to trade at or near one dollar. To support that value, the issuer holds reserves that it reports are worth at least the amount of USDT in circulation. Tether publishes periodic attestations describing what those reserves contain, such as cash, short-term US Treasury holdings, and other assets.

USDT runs on many blockchains, including Ethereum, so the same token can move across different networks. The composition and reporting of its reserves have drawn scrutiny over time. Like any stablecoin, it carries the risk that its market price can move away from one dollar, known as a depeg.