Tether (USDT) stands as one of the oldest and most prominent stablecoins in the cryptocurrency market. Launched in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars, it was designed to bridge the gap between traditional fiat currencies and digital assets. Brock Pierce, a Hollywood actor and entrepreneur, played a significant role in the early crypto landscape, notably helping developers conduct a major ICO in 2013 and later chairing the Bitcoin Foundation in 2014. Initially, USDT operated on the Omni Layer, a protocol built on top of the Bitcoin blockchain.
For a long time, the startup did not publicly disclose its connection to the Bitfinex exchange, which had suffered from hacker attacks but continued to operate. It was revealed in 2017 that both Tether and Bitfinex are managed by the same parent company, iFinex.
Tether specializes in developing digital tokens pegged to traditional currencies. Its most popular product is USDT, which the company claims is fully backed by reserves. After a policy update in 2019, these reserves consist of traditional currency, cash equivalents, and loans to third parties. The company's prolonged refusal to undergo a full audit historically raised questions about its solvency.
In 2021, the U.S. Commodity Futures Trading Commission (CFTC) confirmed that for a significant period, the stablecoin was not fully backed by U.S. dollars. Tether has emphasized that these findings pertained to a time before its updated reserve policy was implemented in 2019.
What is USDT Used For?
At its launch, the team behind Tether outlined several core reasons for creating USDT:
- To simplify international fiat currency transfers.
- To provide a stable alternative to volatile traditional cryptocurrencies.
- To integrate new blockchain technologies with established payment services.
Today, USDT is actively used by traders to purchase other cryptocurrencies on platforms that do not support direct USD bank transfers. Its other primary function is risk mitigation; traders often quickly convert volatile assets into USDT to protect their portfolios during periods of high market turbulence.
What Makes Tether Notable?
A key strength of USDT is its widespread availability across multiple blockchain networks. While it was first created on the Omni Layer, it has since expanded to other major blockchains, including:
- Ethereum (as an ERC-20 token)
- Tron (as a TRC-20 token)
- Algorand
- And several others
It is important for users to understand that USDT on one blockchain, like Tron, is not compatible with wallets on another, like Ethereum. You must always ensure you are sending tokens on the correct network to avoid permanent loss. For a deeper analysis of on-chain activity and trading volumes 👉 explore more market data here.
Where Can You Buy USDT?
The USDT stablecoin is supported by a vast majority of centralized and decentralized trading platforms, as well as peer-to-peer (p2p) services. Major venues include:
- Binance
- Kraken
- Uniswap
- Paxful
- And numerous other global exchanges
Tether (USDT) Market Performance and Statistics
As of the latest data, the price of Tether is approximately $1.00. It maintains its peg with minimal fluctuation, having changed by roughly +0.01% over the last 24 hours.
The all-time high for USDT was approximately $1.21, reached on May 27, 2017. Compared to this peak, the current price is down about -17.3%, though its primary function is stability rather than price appreciation.
Key market metrics include:
- Circulating Supply: 157.83 Billion USDT
- Max Supply: 157.83 Billion USDT
- Market Capitalization: $157.87 Billion
- 24-Hour Trading Volume: $31.04 Billion
These figures underscore USDT's dominant position as the largest stablecoin by market cap and trading volume, serving as a fundamental pillar of the crypto economy.
Frequently Asked Questions (FAQ)
Is Tether (USDT) safe to use?
USDT is generally considered safe for everyday trading and transfers due to its high liquidity and widespread adoption. However, its centralized nature and historical controversy over its reserves mean users should be aware of the counterparty risk associated with Tether Limited, the issuing company.
How is USDT different from other stablecoins like USDC?
The main difference often lies in the issuer and transparency. USDT is issued by Tether, while USDC is issued by Circle. USDC has historically been perceived as more transparent with its attestations, though Tether has provided more recent reports. Technologically, they function similarly across various blockchains.
What blockchains support USDT?
USDT is available on multiple blockchains, including Omni, Ethereum, Tron, Solana, Algorand, and others. This multi-chain presence allows users to choose a network based on transaction speed and cost.
Why would I use USDT instead of real USD?
USDT offers the advantages of blockchain technology: 24/7 global transactions, faster settlement times compared to traditional banking, and easy integration with decentralized finance (DeFi) applications for lending, borrowing, and earning yield.
Can the value of USDT drop below $1?
While it is designed to be pegged 1:1 with the USD, USDT can and has experienced minor deviations from its peg during periods of extreme market stress or negative news. However, market arbitrage activity typically brings it back to $1 fairly quickly.
How can I check the current USDT price?
The Tether price is tracked in real-time on most major cryptocurrency data websites and exchange platforms. These sources provide live charts, market cap, trading volume, and other essential metrics.