USDT (Tether)
Also called: Tether · USD₮ · tether USDT
Definition
USDT, also called Tether, is the largest US dollar stablecoin, issued by Tether, designed to stay at 1 dollar and backed by reserves the company reports in regular attestations.
How USDT works
USDT is the most common quote currency on crypto exchanges and is widely used for P2P trading and cross-border transfers. It is issued on many blockchains, including Tron (TRC-20), Ethereum (ERC-20), BNB Smart Chain, Solana, TON and others. Each network has its own address format and fees, and the receiving side must support the network you send on.
Tether says USDT is backed by reserves mostly in US treasury bills and cash equivalents, along with other assets, and publishes periodic attestation reports. Over the years, critics have questioned the level of transparency, and reserve composition has changed over time.
Tether can freeze USDT at specific addresses, often at the request of law enforcement. Availability also depends on regulation: some EU platforms restricted USDT for EU users because it is not authorised under MiCA.
Example
Suppose you send 1,500 USDT from an exchange to a friend. On TRC-20 the exchange shows an illustrative fee of 1 USDT and on ERC-20 a fee of 5 USDT. Your friend's wallet supports both, so you choose TRC-20 and paste their address starting with T. They receive 1,499 USDT within a few minutes. Choosing ERC-20 would have cost 4 USDT more for the same transfer.
Common mistakes
- Sending TRC-20 USDT to an exchange that only accepts ERC-20 deposits for that address.
- Assuming one USDT can always be redeemed for one dollar by anyone; direct redemption is for verified customers of Tether.
- Ignoring that the cheapest network on one exchange may be expensive or slow on another.
Learn and practise
Try it on an exchange
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nexu888Open OKXFAQ
Is USDT backed by real dollars?
Tether reports reserves mainly in US treasury bills, cash equivalents and other assets, rather than only cash in bank accounts. It publishes attestations, not full audits.
Which USDT network should I use?
The one both sender and receiver support, ideally with low fees. TRC-20 and several other chains are often cheaper than ERC-20.
What is the difference between USDT and USDC?
Both track the dollar. USDT is issued by Tether and USDC by Circle, with different reserve reporting, regulation and availability across regions.