Tether

Tether (USDT) is the largest stablecoin in crypto, a token designed to hold a value of roughly one US dollar. Ranked third overall, it is not a speculative currency but a digital dollar substitute that traders use to move in and out of volatile assets and to provide liquidity across exchanges. Issued by Tether Limited, USDT circulates on many blockchains at once.

What is Tether?

Tether was created to bring dollar stability to an otherwise volatile market. Instead of floating with supply and demand like Bitcoin, each USDT is meant to be redeemable for one dollar, with the issuer holding reserves to back the coins in circulation. This lets people park value in a stable unit without leaving the crypto ecosystem or dealing directly with banks.

How does Tether work?

USDT is a fiat-collateralized stablecoin rather than a mined or staked coin. Tether Limited issues new tokens when cash comes in and redeems them when tokens are returned, aiming to keep the supply matched to reserves so the price stays anchored, or 'tethered,' near a dollar. Because it is issued as a token on host chains such as Ethereum, Solana, Avalanche, Near and Tron, USDT inherits the speed and fees of whichever network it runs on.

Tether tokenomics and supply

Unlike scarce assets, USDT has no fixed cap; supply expands and contracts with demand for digital dollars. Around 184 billion USDT are in circulation against a total issuance near 190 billion. Its price is meant to stay at $1.00, though it has briefly traded above (near $1.32) and below peg during periods of market stress, which is the key risk to watch with any stablecoin.

• Circulating supply: about 184 billion USDT
• Backed by reserves held by Tether Limited
• Available on Ethereum, Solana, Tron, Avalanche, Near and more
• Target price: $1.00, with occasional depeg events

What is Tether used for?

USDT is the market's main trading and settlement currency. Traders use it as a stable base pair, exchanges rely on it for liquidity where dollar banking is difficult, and users move funds between platforms quickly and cheaply. It is also widely used for remittances and as a dollar proxy in regions with limited access to US banking.

Where to buy Tether

USDT is listed almost everywhere; our best crypto exchanges ranking compares venues by liquidity and fees. Because stablecoins carry issuer and reserve risk, storing USDT in a wallet you control, covered in our best crypto wallets guide, keeps custody in your hands.

Is Tether a good investment?

Tether is not designed to appreciate; it is a tool for holding stable value and moving between assets. The real risks are reserve transparency, regulatory scrutiny and rare depeg events rather than price growth. It is not an investment for returns, and this is not financial advice; understand how the peg is backed before relying on it.