USDT

USDT (Tether) is the world's largest stablecoin by market capitalization, designed to maintain a 1:1 peg with the US Dollar. Issued by Tether Limited, USDT is widely used for trading, payments, and as a store of value in cryptocurrency markets.

How It Works

USDT is backed by a combination of reserves including cash, cash equivalents, commercial paper, and other assets held by Tether. Each USDT token is intended to represent one US dollar in Tether's reserves.

Key Features

• Multi-Chain: Available on multiple blockchains including Ethereum (ERC-20), Tron (TRC-20), Solana, and others
• Liquidity: Most liquid stablecoin with the highest trading volume globally
• Use Cases: Cross-border payments, remittances, trading pairs, and preserving value in volatile markets

Considerations

USDT has faced scrutiny over the transparency of its reserves and has been subject to regulatory investigations. While widely used, it's important to understand the centralized nature and potential risks associated with any fiat-backed stablecoin.