Tether USDT

Tether (USDT) is a U.S. dollar-denominated stablecoin launched in 2014 to enable fiat-referenced value to move across blockchain networks. Each USD₮ token is designed to maintain a value of one U.S. dollar, with Tether stating that tokens in circulation are backed by reserves with a value equal to or greater than the outstanding tokens.

Unlike cryptocurrencies that operate on a dedicated blockchain, USDT is issued across multiple existing networks. Current supported deployments include Ethereum, TRON, Solana, TON, Aptos, Avalanche, Kava, Celo, Kaia, Tezos, NEAR, Polkadot Asset Hub and Liquid. The exact token standard therefore depends on the underlying network: for example, USDT uses ERC-20 on Ethereum, TRC-20 on TRON and a Jetton implementation on TON.

USDT was originally introduced using the Omni Layer on Bitcoin. Tether later expanded the token to other blockchains as demand for stablecoins grew. Omni and several other older deployments are now classified by Tether as deprecated, while currently supported networks continue to provide separate implementations of the same USD-denominated asset.

New USDT is issued by Tether rather than generated through mining or blockchain staking. Tether distinguishes between authorized tokens held in its treasury and issued tokens that have entered circulation. Tokens can also be redeemed and removed from circulation, meaning USDT has a variable supply rather than a fixed maximum supply.

Tether states that every USD₮ in circulation is backed 100% by its reserves. Those reserves can include cash, cash equivalents and other assets, and Tether publishes information about token circulation and its reserve holdings through its transparency reporting. Direct issuance and redemption through Tether are subject to account verification, eligibility requirements and applicable fees.

USDT also differs from decentralized cryptocurrencies in its issuer controls. Tether's terms allow it, under specified legal, compliance and risk circumstances, to freeze Tether Tokens or blacklist addresses, including in some cases tokens held in external wallets. These controls are an important part of understanding the operational and counterparty characteristics of a centrally issued stablecoin.

USDT is widely used as a blockchain-based representation of U.S. dollar value for cryptocurrency trading, payments, transfers and settlement across supported networks. Users should verify the correct blockchain and token contract before transferring USDT because addresses and token implementations differ between networks.