What Is Tether (USDT)?
Tether (USD₮ or USDT) is a cryptocurrency stablecoin launched in 2014 by Tether Limited Inc. Pegged 1:1 to the US dollar, it bridges traditional finance and digital assets without being a central bank digital currency (CBDC).
Key Metrics (August 2024)
- Reserves: $118.4 billion ($5.3 billion in excess reserves)
- Q2 2024 Profit: $1.3 billion ($5.2 billion total H1 2024)
- Net Equity: $11.9 billion
- Market Cap: Over $114 billion
Market Dominance
Tether dominates the stablecoin sector with 70% market share and surpassed Bitcoin in 2019 as the most traded cryptocurrency globally. With 350+ million users (July 2024), it operates across 14 blockchains, including Ethereum and Solana.
👉 Discover how Tether maintains its peg
Ownership & Backing
Owned by iFinex (British Virgin Islands), which also runs Bitfinex, Tether’s transparency reports detail its reserves composition—primarily cash, cash equivalents, and short-term deposits.
FAQs About Tether (USDT)
1. How is Tether different from other stablecoins?
Tether pioneered the stablecoin model, offering liquidity and stability via 1:1 USD backing, unlike algorithmic stablecoins.
2. Is Tether fully backed by USD?
Yes, Tether claims full backing by reserves, including cash, loans, and other assets, with regular audits.
3. Why does Tether face regulatory scrutiny?
Due to its opaque reserves history and market influence, regulators demand greater transparency.
4. Can Tether lose its peg?
Though rare, depegging risks exist during extreme market volatility, but arbitrage mechanisms usually restore parity.
5. Which blockchains support USDT?
Ethereum, Tron, Solana, and 11 others—all listed on Tether’s official site.
👉 Explore Tether’s latest reserve breakdown
Note: The unrelated JPY section has been omitted to focus exclusively on Tether.
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- Tether (USDT)
- Stablecoin
- Cryptocurrency reserves
- USDT peg
- Tether Limited
- Stablecoin market share
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