What it is
Tether (USDT) is a stablecoin designed to mirror the value of the US dollar, operating primarily on the Ethereum blockchain but also available on others. It is issued by Tether Limited, which claims to back each USDT with a corresponding amount of reserves, historically including cash, cash equivalents, commercial paper, corporate bonds, and precious metals. This backing is intended to ensure its stability and redeemability.
USDT's stability and widespread availability make it a critical asset for crypto traders, who use it to quickly move in and out of volatile assets without converting to fiat currency, often avoiding traditional banking delays. Its market cap and reserve attestations are closely watched for signs of depeg risk or solvency concerns. Regulatory scrutiny often focuses on the transparency and composition of its backing reserves.
Why it matters
USDT is a primary tool for trading and holding value in the crypto market. Its stability and backing are crucial for market confidence.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice