Understanding USDT — The Most Widely Adopted Stablecoin

What is USDT?

USDT is the stablecoin equivalent of a US dollar. Tether works to change the financial world through a modern and digital approach to money. Tether’s USDT tokens give holders the ability to store value and transact wih an asset that is less volatile than digital currencies and can be used across different blockchains, like Algorand, Ethereum, EOS, Liquid Network, Omni, Tron, Bitcoin Cash’s Standard Ledger Protocol, and Solana. Converting from fiat to crypto or crypto to fiat involves friction and relatively high costs. USDT allows people to hold an asset with the same value as a US dollar without converting out of crypto into fiat.

Tether began offering the first US backed stablecoin, USDT in 2014, and has maintained market dominance. With 78 billion USDT in circulation, Tether’s USD equivalent token is the most widely adopted stablecoin. Tether also offers a Euro pegged stablecoin called EURT. CNHT and XAUT, pegged to Chinese Yuan and gold are also in development.

All Tether tokens are pegged at 1-to-1 with a matching fiat currency and are backed 100% by Tether’s reserves. Tether Holdings Limited is audited quarterly. The reserves are a mix of Treasury Bills, Cash & Bank Deposits, Money Market Funds and Commercial Paper.
You can see the details here: https://tether.to/en/transparency

At an institutional level, USDT has been important to the growth of the crypto sector. During recent bull markets, USDT played a fundamental role in moving liquidity from one exchange to another without creating exposure to volatility risk. It also helps at an individual level, particularly in bear markets. For example, if you want to sell one crypto asset, but you are not sure what you want to buy next, rather than converting to fiat, you can sell for USDT and reduce your transaction costs and avoid exchange limits. Before 2014, if you wanted to move assets between crypto and a stable USD-valued asset, you would have to convert your crypto to fiat. Now, when you want to take a risk-off position, you can trade your crypto assets for USDT and when you are ready to return to a risk-on position, you will find USDT is one of the most common trading pairs. You can also earn low-risk returns on your USDT in periods of uncertainty by lending them in staking pools.

Learn more about Stablecoins in our article series:

What are stablecoins?
Stablecoins collateralized by fiat currency
Stablecoins collateralized by cryptocurrency
Stablecoins collateralized by commodities
Algorithmic stablecoins

Learn more about Stablecomp and how it can help you earn high returns with low risk.

Check our homepage for more details and Follow our channels:

🌐 Website|✈ Telegram | 🐤 Twitter

Please come join the Stablecomp community and ask questions on Telegram!

For more precise details, take a look at our GITBOOK.

The first DeFi platform to easily manage and earn interests on your stablecoins. 💻https://www.stablecomp.com/

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Tron: the biggest controversy in the blockchain industry

Why Shenzhen is Designated to Support the Development of Crypto Currency Research?

XRP Price Increases by Over 40% in the Last 24-Hours, Surpasses US$1 for the First Time Since 2018

SAL snapshot, SLM burn, team fund address

META BLOXXX wants the Cosmos community to understand our vision .

As Bears breached a key support level, Ethereum fell below the $3,000 mark

GLXY Stock Update: New Information about Mining, Holdings, and Retail.

Bitcoin Weekly Forecast: BTC forms a bull trap before crashing to $30,000

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store


The first DeFi platform to easily manage and earn interests on your stablecoins. 💻https://www.stablecomp.com/

More from Medium

Around 70,00,00,000 transactions have now been processed by the Bitcoin Network.

Blockchain Applications: What Is Blockchain Used For?

Introduction to Bitcoin for developers

The Brainstorm Panel : Decentralized Hedge Fund? What’s That?