Tether (USDT), launched in 2014 (initially as 'Realcoin') by Tether Limited, is the largest and longest-running US-dollar-pegged stablecoin, designed to hold a stable 1:1 value with the US dollar rather than fluctuate like Bitcoin or Ethereum. It is not a blockchain of its own — it is issued as a token across many chains, including Ethereum, Tron and Solana among others — and its role in the market is primarily as a trading pair and value-transfer rail rather than a speculative asset in itself.
Category
stablecoin
Consensus mechanism
—
Launched
2014
How the peg is maintained
Tether Limited maintains the 1:1 peg by minting new USDT when it receives fiat currency from institutional clients, and burning (removing from circulation) USDT when it is redeemed back to fiat — an issuance model driven entirely by market demand rather than a protocol-coded supply schedule. Tether publishes periodic attestation reports on the composition of its reserves (cash, cash equivalents, US Treasuries and other assets), though these are attestations rather than full independent audits, and the exact reserve composition has been a recurring point of scrutiny and regulatory settlement over Tether's history — worth checking Tether's current, published reserve reports directly rather than relying on older figures.
Where and how it's used
USDT is by far the most-traded stablecoin by volume and the default quote currency on a large share of global exchange trading pairs, and is widely used for cross-border value transfer, particularly on lower-fee chains like Tron. Its dominance means liquidity and acceptance are rarely an issue, though users should understand that holding USDT means holding exposure to Tether Limited's issuer and reserve-management risk, distinct from the underlying blockchain's own security.
Tokenomics
| circulating-supply | — |
|---|---|
| max-supply | — |
| issuance-model | Minted and burned on demand by Tether Limited against reserve assets; not protocol-capped |
Last verified: 8 July 2026. before you rely on any figure — live circulating supply and market cap are never published here; check a live tracker.
Risks & criticisms
- Peg stability depends on Tether Limited's reserve management and redemption processes, not on a blockchain protocol rule — this is issuer/counterparty risk, distinct from smart-contract or consensus risk.
- Tether has settled regulatory actions in the past over reserve-disclosure practices; check its current, published attestation reports rather than assuming historical criticisms still apply unchanged.
- Regulatory treatment of stablecoins is evolving rapidly in several jurisdictions (including under the EU's MiCA framework) — verify current local rules before relying on USDT for large-value transfers.
Where to buy
Frequently asked questions
Is USDT backed 1:1 by US dollars in a bank account?
Tether states USDT is backed by reserves including cash, cash equivalents and short-dated US Treasuries, published via periodic attestation reports — check Tether's current attestations for the exact composition rather than assuming a simple cash-only backing.
Does USDT run on its own blockchain?
No. USDT is issued as a token across multiple blockchains, including Ethereum, Tron and Solana among others, rather than having its own dedicated chain.
Is USDT the same as USDC?
No — they are separate stablecoins from separate issuers (Tether Limited and Circle respectively), each with their own reserve composition and attestation practices.