What is USDT?
What Is Tether (USDT)?
Tether (USDT) is a stablecoin pegged to the value of the US dollar. Stablecoins are cryptocurrencies backed by reserve assets, designed to maintain a steady price. USDT is issued by Tether with the aim of keeping 1 USDT ≈ 1 USD. Users can mint (swap USD or equivalent assets for USDT) or redeem (convert USDT back to USD) directly with the issuer. As a token, USDT operates on multiple blockchains such as Ethereum and Tron, with transaction speed and fees determined by the selected network.
What Are USDT’s Current Price, Market Cap, and Circulating Supply?
As of 2026-01-14 05:02 UTC, according to the provided market data: USDT’s latest price is $0.999352; circulating supply is 186,848,398,790.43546 USDT; total supply is 190,782,697,547.28952 USDT (no fixed maximum supply as it changes with minting and redemption); circulating market cap is approximately $186,727,369,003.64; fully diluted market cap is around $190,659,119,345.07; market dominance is about 5.7485%.
Price movements: +0.0038% in the last hour, +0.0613% over 24 hours, +0.0090% over 7 days, and -0.0693% over 30 days. The 24-hour trading volume is roughly $125,598,136,020.54 with 166,156 active trading pairs; status: “active.”
Terminology explained: Market cap is calculated as price multiplied by circulating supply; circulating supply refers to tokens available in the market; fully diluted market cap estimates value based on total supply. Stablecoin prices usually fluctuate slightly around $1 due to minting/redemption and market spreads.
Who Created Tether (USDT) and When?
USDT was launched by Tether Limited in 2014. Originally known as Realcoin, it was later rebranded as Tether USDt. The core purpose was to offer an on-chain settlement medium pegged to the US dollar, streamlining valuation and value transfer within the crypto market. Source: Tether official site and public records (tether.to, year: 2014).
How Does Tether (USDT) Work?
USDT operates on a “pegged and reserve-backed” model: the issuer holds cash and equivalents in reserve and issues (mints) or redeems USDT for institutional clients or partners at a 1:1 ratio. The peg means that the target price remains at $1 via mechanisms like minting/redemption, market making, and user demand.
USDT is a token—an asset deployed on existing blockchains such as Ethereum (ERC-20) and Tron (TRC-20). Each network has its own transaction fees (gas fees) and confirmation speeds, so users must choose compatible wallets and networks for transfers.
The issuer regularly publishes reserve breakdowns and attestation reports to demonstrate asset backing for circulating USDT (source: Tether Transparency page, as of Jan 2026). Some networks support features like address freezing for regulatory compliance or risk management.
What Can You Do With Tether (USDT)?
Common use cases for USDT include:
- Trading & Settlement: Used as a “USD substitute” in spot and derivatives markets for efficient buying/selling of crypto assets.
- Hedging & Capital Parking: A safe haven during volatility—temporarily convert holdings to USDT to reduce exposure to price swings.
- Cross-border Payments & Transfers: Multi-chain support enables fast global transfers with speed and costs depending on the chosen network (e.g., Ethereum or Tron).
- DeFi & Yield Generation: Serves as a stable asset in decentralized applications for lending, liquidity provision, etc.; users should assess platform risks.
Wallets and Ecosystem Solutions for Tether (USDT)
Common storage options include:
- Exchange Custodial Wallets: Assets managed by the platform for convenience but require attention to platform security and account protection.
- Software Wallets: For example, Ethereum-compatible wallets manage ERC-20 USDT; Tron wallets manage TRC-20 USDT. Always verify that chain and contract addresses match before use.
- Hardware Wallets: Private keys are stored offline for enhanced long-term security.
Expansion solutions include cross-chain transfers and bridging services; however, these carry additional technical and counterparty risks. It’s recommended to prioritize official deposit/withdrawal networks.
Term explanation: A private key controls asset ownership; if lost or leaked, funds may be irretrievable.
Major Risks and Regulatory Considerations for Tether (USDT)
- Issuer & Reserve Counterparty Risk: USDT’s value depends on the issuer’s reserves and ability to honor redemptions—monitor transparency reports and policy changes.
- Peg & Depegging Risk: In extreme scenarios, market price may temporarily deviate from $1; minting/redemption and market making help but don’t guarantee the peg.
- Regulatory Compliance: Stablecoin regulation varies across jurisdictions and can impact issuance, redemption, and platform support.
- Smart Contract & Address Controls: Some networks allow address freezing; certain addresses may be frozen during risk or compliance events.
- On-chain & Operational Risks: Using the wrong network or address can render assets inaccessible—double-check ERC-20 vs TRC-20 network labels.
- Exchange & Account Security: Platform risks and account breaches can result in loss—enable two-factor authentication (2FA) and withdrawal whitelists.
How to Buy and Safely Store Tether (USDT) on Gate
Step 1: Register a Gate account and complete identity verification (KYC). KYC stands for “Know Your Customer,” required for regulatory compliance and enhanced account security. Visit gate.com and follow the instructions to submit documents.
Step 2: Fund your account. Choose a fiat deposit channel based on your region or transfer crypto from another wallet into your Gate account to exchange for USDT. Note that fees and processing times vary by deposit method.
Step 3: Go to the spot trading section and search for “USDT.” Select an appropriate trading pair—for example, exchange BTC or ETH for USDT, or buy USDT with local currency in the fiat zone (available options are displayed on Gate).
Step 4: Place your order. Choose between a market order (instant execution at current price) or limit order (set your preferred price). Double-check quantity, price, and fees before confirming.
Step 5: Withdraw or store your USDT. For self-custody, select the correct network (ERC-20 or TRC-20) on the “Withdraw” page, verify your wallet address, test with a small amount before transferring larger sums. If storing on Gate, enable all security settings and monitor risks regularly.
Step 6: Enhance security. Enable 2FA, set up withdrawal whitelists and anti-phishing codes. Avoid logging in from insecure devices or networks. For self-custody, securely back up your private key or recovery phrase offline with multiple redundancies.
How Does Tether (USDT) Compare to USDC?
- Issuer: USDT is issued by Tether; USDC by Circle and its partner consortium. Both are USD stablecoins but differ in issuance and compliance frameworks.
- Reserve Disclosure & Attestation: Both publish reserve reports and third-party attestations. Market attention varies regarding report frequency, detail, and audit standards—always review their latest disclosures.
- Networks & Usage Patterns: USDT circulates widely across many chains with strong adoption on TRC-20 in some cases; USDC also has significant presence on Ethereum and other leading chains. Choice often depends on fees, speed, and ecosystem compatibility.
- Fees & User Experience: Gas fees and confirmation times differ notably between chains; users moving funds frequently prioritize low transfer costs and deep liquidity.
- Compliance Features: Both support compliance actions (e.g., freezing addresses), but policies and processes differ—consult official resources. Conclusion: Both USDT and USDC provide USD exposure; choose based on usage scenario, preferred network, fee structure, and compliance requirements.
Summary of Tether (USDT)
USDT is a multi-chain stablecoin pegged to the US dollar, typically maintaining a value close to $1—ideal for trading pairs, hedging risk, and cross-border settlements. Current data shows large circulation and deep liquidity, providing ample USD liquidity to markets. Users should track issuer disclosures and regulatory developments, verify networks and addresses carefully, and select custody methods according to their needs. When buying USDT on Gate, completing KYC, choosing appropriate trading pairs/networks, enabling 2FA, and backing up private keys help balance efficiency with security.
FAQ
Is USDT actual US dollars?
USDT is not physical USD—it’s a blockchain-based digital stablecoin issued by Tether. Each USDT is backed by real USD reserves held by the company, so its price stays anchored at $1. Think of it as “digitizing” dollars with blockchain tech for global 24/7 transfers.
What can you do with USDT?
USDT is mainly used for crypto trading pairs, settlement of funds, and cross-border payments. Many exchanges list USDT as a base pair for trading; investors can quickly swap crypto assets into stablecoins to lock in gains or send funds internationally. USDT also features heavily in DeFi lending, liquidity mining, and other financial applications.
On which blockchains is USDT issued?
USDT is issued on several major blockchains including Ethereum, Tron, Polygon, Solana, among others—with Tron and Ethereum being the largest networks by volume. USDT tokens are not directly transferable between chains—confirm your destination network before sending; Gate supports multi-chain deposits/withdrawals.
What risks should you consider when holding USDT?
Main risks include trust in Tether’s reserves (despite multiple audits there are ongoing debates), temporary depegging during extreme market stress, smart contract vulnerabilities, or changes in regulatory policy. Store USDT on reputable exchanges or self-custody wallets; monitor official updates; avoid large single-stablecoin exposures over long periods—see stablecoin.
How do you safely buy and store USDT on Gate?
Buying USDT on Gate is straightforward: after completing identity verification, deposit fiat currency or exchange other crypto assets for USDT. You can hold it in your trading account for active use or transfer it into your Gate wallet or a self-custody wallet for longer-term storage. For large amounts use hardware wallets or reputable apps—never share your private key or recovery phrase.
Tether (USDT) Key Terms Glossary
- Stablecoin: A crypto asset pegged to a fiat currency like USD to reduce price volatility.
- Reserve Funds: Fiat money or equivalent assets held by stablecoin issuers to ensure price stability.
- On-chain Transfer: Peer-to-peer value transfers via blockchain networks—transparent and fast.
- Multi-chain Deployment: Issuance of a token across several blockchains like Ethereum or Tron to increase liquidity.
- Gas Fees: Transaction fees paid on blockchains to incentivize validators.
- Liquidity: The ease with which an asset can be bought/sold; high liquidity means more trading pairs with tighter spreads.
Tether (USDT) References & Further Reading
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Official Website / Whitepaper:
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Developer Resources / Documentation:
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Media Coverage / Research:
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