What is Tether (USDT)?
Tether (USDT) is a dollar-pegged stablecoin designed to hold a 1:1 value with the US dollar across many blockchains. Tether (USDT) aims to stay near $1, unlike volatile Bitcoin, and serves as a digital dollar for trading, transfers and temporarily parking value.
Tether (USDT) is issued by the company Tether and first launched in 2014, according to Tether's own materials. Tether (USDT) had roughly $184.6 billion in circulation at the end of June 2026 per Tether's quarterly attestation, making it the largest stablecoin with over 60% of the total stablecoin market in the same period according to industry tallies.
How does Tether (USDT) keep its $1 peg?
Tether (USDT) is not its own blockchain but a token issued on networks such as Ethereum and Tron. Tether (USDT) supply expands when users deposit dollars and new tokens are minted, and contracts when tokens are redeemed for dollars and burned.
Tether (USDT) relies for its $1 value on the issuer's promise to hold reserves, such as cash equivalents and short-term US Treasuries, at least equal to the tokens in circulation. Tether (USDT) is a centralized stablecoin whose minting and burning are controlled by the company, so whether its reserves are sufficient and safe is the core question behind its stability and has long been its main controversy.
24h Change+0.02%
7d Change+0.01%
Market Cap$175,284,873,842
24h Volume$48,542,677,285
24h High$0.999392
24h Low$0.99903
All-Time High$1.32
How does the US GENIUS Act affect Tether (USDT) reserves?
The United States enacted the GENIUS Act in July 2025, requiring US stablecoin issuers to hold reserves 1:1 in cash, short-term Treasuries and similar assets and to publish monthly reports. Tether (USDT) is issued by a foreign issuer headquartered in El Salvador, so continued distribution on US platforms depends on a Treasury comparability determination, which had not been issued as of CoinDesk reporting in July 2026. The same reporting noted that, if the transition period is read to cover foreign issuers, the deadline would be July 18, 2028.
Tether (USDT) reserves stood at about $187.75 billion in total assets against about $183.64 billion in liabilities as of June 30, 2026, per Tether's quarterly attestation, with cash, cash equivalents and short-term deposits making up about 74.9%. Tether (USDT) reserves beyond that portion include gold, Bitcoin and secured loans, which do not qualify under GENIUS Act reserve rules.
Separately from Tether (USDT), the company launched USAT, a US-regulated dollar stablecoin issued through Anchorage Digital Bank, on January 27, 2026, according to Tether's announcement. Tether says it is also working toward GENIUS Act compliance for USDT itself.
What is Tether (USDT) used for?
Tether (USDT) serves as the base trading pair, such as BTC/USDT, on almost every crypto exchange and is a common way to move temporarily into dollar value during market volatility.
Tether (USDT) sees heavy real-world use in emerging markets where banking access is limited, especially Tron-based USDT for sending dollars quickly at low cost. Tether (USDT) is also a core asset in DeFi for deposits, lending and payments.
What are the risks of Tether (USDT)?
Tether (USDT) carries reserve-transparency risk first: Tether has published quarterly attestations rather than a full audit by a major accounting firm, and part of its reserves are non-qualifying assets, which keeps the controversy alive. Tether (USDT) also carries regulatory risk, since GENIUS Act compliance and the Treasury's determination can shape its availability in the United States.
Tether (USDT) carries centralization risk as well: the issuer can freeze assets at specific addresses, and its very large circulation means problems could ripple across the whole crypto market. Tether (USDT) is a stablecoin but not a risk-free asset; this overview is not investment advice, so do your own research before using it.
