Tether

Tether is the dollar-denominated token most of the crypto market actually uses, issued across a very large number of chains. Its reserves are reported through quarterly attestations by an accounting firm rather than a full audit — a distinction that has defined the debate around it for years.

Attestation is not audit

An attestation confirms holdings at a point in time. A full audit examines internal controls, valuation methodology and completeness on an ongoing basis. Tether publishes the former and has never published the latter. That is the substantive criticism, and it has coexisted with an unbroken peg through multiple market crises.

Reserve composition is what matters

The reported reserves are predominantly short-dated government instruments alongside cash equivalents, with a smaller share in other assets. The relevant question for any fiat-backed token is not the total but the liquidity of what backs it: a reserve that cannot be sold quickly during a redemption wave is not the same as one that can.

Redemption is wholesale, not retail

Direct redemption with the issuer applies to verified institutional counterparties above a minimum size. Everyone else exits through the secondary market, which is where the price is actually set. The peg is maintained by arbitrage between that market and the redemption channel rather than by a guarantee available to individual holders.

Chain reach is the practical moat

USDT is issued on a very wide range of networks, including chains where it is the primary dollar asset for remittance and cross-border flows. That distribution is why it remains the default quote asset on most exchanges and the settlement instrument in markets underserved by banking.

The freeze capability

The issuer can freeze balances at specific addresses and has done so in response to law enforcement requests. For most users this is irrelevant or reassuring; for anyone requiring censorship resistance, it is the reason a centrally issued token cannot serve that purpose.