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Tether

USDT · Field entry
StablecoinPayments & moneyStablecoins

The most widely used dollar stablecoin, issued by Tether and backed by its reserves

$0.99980.01%Snapshot · October 4, 2026 · updates live
Market cap
$184.05B
24h volume
$35.87B
Rank
#3
Circulating
184.09B USDT
Max supply
No fixed cap
All-time high
$1.32 July 23, 2018

USDT price chart

7-day snapshot. Chart data from CoinGecko.

What is Tether?

Tether (USDT) is a stablecoin designed to stay worth one US dollar. It is issued by Tether, a company now headquartered in El Salvador, which says every token is backed by a reserve of Treasury bills, cash equivalents and other assets. People mainly use USDT to trade, move dollars across borders and hold dollar value on blockchains.

Utility Lens

What Tether actually does

Gives people and businesses a digital dollar that moves on many blockchains around the clock.

Real-world usage
establishedUSDT has been the dominant trading and cross-border dollar token for years across many exchanges and blockchains.
Token necessity
essentialThe token is the product itself; there is no separate network token involved.
Decentralization
centralizedOne company controls minting, redemption and reserves, and it can freeze tokens held at specific addresses.
Track record
longLaunched in 2014; it has briefly traded below $1 during stress (2018 and May 2022) and settled with the CFTC in 2021 over past reserve claims.

How we rate

What it’s used for

Traders use USDT as the main dollar pair on many crypto exchanges, and people in countries with weak currencies or capital controls use it to hold and send dollar value. Businesses settle cross-border payments in it, and it is a common building block in DeFi apps and on payment-focused chains such as Stable.

Role of the USDT token:

reserve backedpayments

Evidence of real use

  • Tether publishes reserve reports for its issuing entities; the most recent listed on its transparency page was as of June 30, 2026. Source
  • Direct issuance and redemption with Tether requires a verified account, a $100,000 minimum and a redemption fee of the greater of $1,000 or 0.1%. Source
  • In October 2021 the CFTC ordered Tether to pay a $41 million civil penalty over misleading claims that USDT was fully backed by US dollars at all times. Source
  • In November 2025 S&P Global Ratings cut its USDT stability assessment to 5 (weak), citing more higher-risk reserve assets and disclosure gaps. Source

How Tether works

Verified customers, usually large firms, send dollars to Tether and receive newly minted USDT; when they hand USDT back, Tether pays out dollars and destroys the tokens. Most people never deal with Tether directly. They buy and sell USDT on exchanges or through apps, and the price stays close to $1 because large customers can profit from redeeming when it trades below a dollar and from minting when it trades above one.

Tether says its reserves exceed the tokens outstanding and consist mostly of short-term US Treasury bills and similar instruments, plus assets such as gold, bitcoin and secured loans. It publishes quarterly reserve reports with an accountant's attestation rather than a full financial audit. Critics, including S&P Global in 2025, point to the riskier reserve assets and limited disclosure, so you are relying on Tether's own reporting and management.

USDT runs as a token on many blockchains, including Tron and Ethereum. Tether can freeze tokens at specific addresses, which it does in response to law-enforcement requests. Under the US GENIUS Act, USDT is issued by a non-US company, so its future access to US platforms depends on the foreign-issuer rules. Tether separately launched USAT in January 2026, a US-focused stablecoin issued by Anchorage Digital Bank.

Key moments

  1. 2014Tether launches the first version of its dollar token.
  2. 2018USDT briefly trades well below $1 on some exchanges during a confidence scare before recovering.
  3. 2021Tether settles with the CFTC, paying a $41 million penalty over past claims about its reserves.
  4. 2022During the Terra collapse in May, USDT dips to about $0.95 before recovering within a day.
  5. 2025Tether moves its headquarters to El Salvador; in November S&P cuts its USDT assessment to 'weak'.
  6. 2026Tether launches USAT, a separate US stablecoin issued by Anchorage Digital Bank under the GENIUS framework.

Supply

There is no supply cap. New USDT is minted when verified customers deposit dollars and destroyed when tokens are redeemed, so supply rises and falls with demand. Tether keeps any interest earned on reserves, which is its main source of profit; holders receive no yield.

Risks to understand

  • Reserve risk: the backing includes assets such as bitcoin, gold and secured loans, and reporting is through quarterly attestations rather than a full audit.
  • US regulatory risk: The GENIUS Act, signed in July 2025, is expected to take effect on January 18, 2027. As of October 2026, Treasury, the OCC and the Federal Reserve had published proposed implementing rules, but final rules were still pending. As a foreign issuer, USDT must meet foreign-issuer conditions to stay available on US platforms, and from July 2028 US service providers may sell only stablecoins from licensed issuers.
  • Freeze risk: Tether can block tokens at any address, so funds tied to disputed or flagged activity can become unusable.
  • Redemption access: only verified customers meeting a $100,000 minimum can redeem directly, so most holders depend on exchange liquidity to exit at $1.
  • Depeg risk: USDT has slipped below $1 during market stress before, and a loss of confidence could cause a sharper drop.

Tether FAQ

Is USDT backed one-to-one by dollars in a bank?

Not exactly. Tether says its reserves exceed the tokens outstanding, but they are mostly Treasury bills and other instruments, including some bitcoin, gold and loans, rather than only bank cash.

Can I redeem USDT directly with Tether?

Only if you complete Tether's verification and redeem at least $100,000, paying a fee. Most people sell USDT for dollars on an exchange instead.

Is USDT legal in the United States?

Yes, you can hold it, and US platforms list it as of October 2026. Under the GENIUS Act, its long-term availability on US platforms depends on Tether meeting the law's foreign-issuer requirements.

What is the difference between USDT and USAT?

USDT is Tether's global stablecoin issued outside the US. USAT is a separate US-focused token launched in January 2026 and issued by Anchorage Digital Bank, a federally chartered bank.

Sources

  1. Transparency — Tether
  2. Fees — Tether
  3. CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million — Commodity Futures Trading Commission
  4. Stablecoin Stability Assessment: Tether (USDT) — S&P Global Ratings
  5. Tether Announces the Launch of USA₮ — Tether
  6. Crypto firm Tether and its founders finalizing move to El Salvador — Reuters
  7. Stablecoin Depegging History — Spark
  8. Treasury Seeks Public Comment on GENIUS Act Proposed Rulemaking — U.S. Department of the Treasury

Last reviewed October 4, 2026 by The Crypto Guide editorial team. Utility Lens ratings are editorial judgments, not investment advice. Market data from CoinGecko. Spot an error? Request a correction.