Tether (USDT)

Tether (USDT) is the largest stablecoin by market capitalisation, designed to keep a value of one US dollar. It was launched in 2014 by the company now known as Tether Limited and is issued on many blockchains, including Ethereum, Tron and Solana.

Tether says each USDT is backed by reserves held by the company, mostly short-term US Treasury bills, along with other assets including some gold and bitcoin, and it publishes quarterly attestation reports. It has been criticised for years over the transparency of those reserves. In 2021, the US Commodity Futures Trading Commission fined Tether $41 million over past claims that USDT was fully backed by US dollars at all times.

USDT is the most traded asset in crypto and is the main quote currency on many exchanges. It is widely used for trading, cross-border payments and saving in dollars in countries with weak currencies. Like any centrally issued stablecoin, Tether can freeze USDT held by specific addresses.