TetherUSDT

Tether launched in 2014 as one of the first dollar-pegged tokens on a blockchain. The simple promise — one USDT redeemable for one US dollar — created the first reliable on-ramp between crypto and traditional money. Over time USDT became the de facto trading pair for nearly every crypto asset, especially on Asian exchanges and on-chain markets where USD banking access is constrained.

Reserves backing USDT have been the subject of sustained scrutiny since 2017. Tether settled with the NYAG in 2021 ($18.5M) and with the CFTC ($41M) over historical misrepresentations of the backing. Since then Tether has published quarterly attestations from BDO Italy showing reserves composed primarily of US Treasury bills, with cash equivalents and a smaller portion of secured loans and other investments. As of late 2024, Tether disclosed approximately $100B+ in Treasury holdings, making the company one of the largest single buyers of US short-term debt.

USDT is issued across multiple chains — Ethereum, Tron, Solana, Avalanche, and others. Tron historically carried the majority of transfer volume due to lower fees, while Ethereum hosts the deepest institutional liquidity. USDT remains the most-used dollar instrument in crypto despite the persistent existence of credibly-collateralized competitors (USDC, FDUSD), driven by inertia, exchange listing depth, and emerging-market preference for dollar-equivalent assets where USD banking isn’t available.