What is Tether USDt?

Tether USDt, or USDT, is a digital token that was launched in 2014. It is designed to facilitate the use of traditional fiat currencies in a digital way, intending to provide an alternative to the conventional financial system with a digital approach to money. Tether (USDT) is pegged to the value of a U.S. dollar (also known as a stablecoin). Tether's issuer claims that USDT is backed by bank reserves and loans that match or exceed the value of USDT in circulation. This digital dollar is powered by blockchain technology and exists on several blockchains, including Algorand, Avalanche, Ethereum, EOS, and more. Important note: at this time, Coinbase only supports USDT on the Ethereum blockchain (ERC-20). Do not send USDT to Coinbase on any other blockchain.

How does Tether USDt work?

Tether USDt operates as a digital token built on various blockchains. Each Tether token is backed 100% by Tether's reserves, and the company strives to maintain transparency by publishing a record of its current reserve assets. The value of USDT is intended to be maintained by Tether to remain pegged to the U.S. dollar, with the company allocating the same amount of USD to its reserves whenever it issues new USDT tokens.

What are the potential use cases for Tether USDt?

Tether USDt offers a variety of potential use cases. Its stability, compared to the high volatility of other cryptocurrencies, might make it attractive for beginners wanting to enter the cryptocurrency world. Additionally, USDT provides a simple way to transact a U.S. dollar equivalent across regions, countries, and even continents via blockchain, eliminating the need for traditional intermediaries like banks or financial service providers.

What is the history of Tether USDt?

Tether USDt was launched in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. Originally known as Realcoin, it was the first blockchain-enabled platform to facilitate the digital use of traditional currencies. Over the years, Tether has made strides, allowing customers to transact with traditional currencies across the blockchain. Despite some controversies, Tether has continued its operations. As of November 2023, there were over 88.8 billion USDT tokens in circulation. Tether has expanded into the Latin American market in 2022 with the launch of MXNT, a new stablecoin backed by the Mexican peso.