USDT (Tether)

USDT launched in 2014, first on the Bitcoin blockchain through the Omni Layer, and has become the largest stablecoin by market capitalization. Tether creates new tokens when approved clients deposit dollars and destroys them when tokens are redeemed, which is what keeps the market price close to $1. According to the company's reports, most of the reserves are short-term US Treasury bills, with smaller amounts in other assets such as gold and bitcoin.

USDT circulates on several blockchains, with Tron and Ethereum carrying most of the supply. It is the main quote currency on centralized exchanges, common collateral for derivatives and a popular way to hold dollars in countries with high inflation or currency controls, such as Argentina, Venezuela or Turkey, where it often changes hands on peer-to-peer markets.

The main risks are counterparty and regulatory. Holders depend on Tether's reserves and on its willingness to redeem, the reports are attestations rather than full audits, and the company can freeze addresses at the request of authorities. In 2021 the New York Attorney General and the CFTC fined Tether over past claims about its backing, and in 2025 several exchanges stopped offering USDT to users in the European Union because it is not authorized under MiCA.