Knowledge
Last updated: 23 October 2026
USDT, also called Tether, is a stablecoin issued by the company Tether that aims to stay worth 1 US dollar. It's a token that runs on several blockchains, including Tron and Ethereum, so the same coin exists on more than one network.
It's also big. BIS researchers call Tether the largest stablecoin, and Tether's Q2 2026 report put the tokens it had issued at about $184.6 billion as of 30 June 2026. This guide covers who issues USDT, how it holds its price, which networks it runs on and what people use it for. It also covers the parts of its record worth knowing before you hold any.
What is USDT?
USDT is a fiat-backed stablecoin: a crypto token that Tether issues against reserves it holds, with the aim that 1 USDT always equals 1 US dollar. The "T" stands for Tether, which writes the name as USD₮.
Tether launched in 2014, according to its FAQ. USDT isn't a bank deposit, and no government issues it. Holding it means holding a claim on a private company and its reserves, which is why so much of this guide is about that company.
The point of USDT is that it doesn't move. Bitcoin and ether can swing in price within an hour. USDT is built to stay at a dollar, so people use it as a dollar balance inside crypto: something to hold between trades, send to someone or keep on an exchange.
Our stablecoins guide explains how stablecoins work in general, including the other main types. If you're choosing between the two biggest dollar tokens, see how USDT compares with USDC.
Who issues USDT?
USDT is issued by Tether. The company's website names Tether Operations, S.A. de C.V. as the entity behind its services.
Tether has a long connection to the Bitfinex crypto exchange. In its 2021 settlement, the New York Attorney General described Bitfinex and Tether as "owned and controlled by the same small group of individuals." Later that year, the CFTC found that Tether had mixed reserve funds with Bitfinex's operational and customer funds.
That history is the background to most questions about whether USDT can be trusted. The safety section further down sets out what regulators found and what has changed since.
How does USDT work?
USDT holds its price through issuance, redemption and the traders who move between the two. In order:
- Tether issues new USDT when customers who have passed its identity checks (KYC, short for "know your customer") send it dollars. Its how-it-works page says Tether "only issues new Tether tokens when they are requested and purchased by customers."
- Tether redeems USDT for dollars for those same verified customers, who send tokens back and receive money.
- Traders close the gap. If USDT trades below $1 on exchanges, a verified customer can buy it cheaply and redeem it with Tether at $1. If it trades above $1, they can get new USDT from Tether at $1 and sell it higher. Both trades push the price back toward a dollar.
Here's the part most explainers skip. Tether's fees page, checked on 23 October 2026, sets a minimum acquisition or redemption of 100,000 USD and a verification fee of 150 USD paid in Tether tokens. Each redemption costs "the greater of $1,000 or 0.1%." The page also says Tether has "the sole discretion to approve or not approve accounts."
So most people never deal with Tether at all. They buy USDT from an exchange or an on-ramp, and when they want dollars back, they sell it the same way. The peg runs through a small group of large verified customers, and everyone else relies on them making those trades.
What backs USDT?
Tether says USDT is backed by the reserves it holds. Its FAQ says the reserve reports are prepared by BDO Italia, an independent accounting firm, and they're published quarterly.
The latest at the time of writing is Tether's Q2 2026 attestation, covering 30 June 2026. It reported total assets of $187,751,426,411 against total liabilities of $183,641,897,215, of which $183,622,105,630 related to digital tokens issued. That leaves a reported surplus of about $4.11 billion.
Tether says most of its reserves sit in US government-backed instruments and short-term liquidity facilities. The same report describes more than 146 tons of physical gold, and gold isn't a dollar. Its price moves.
An attestation confirms what assets existed on one date. A full audit goes further and tests the accounts and controls behind them. Tether announced in March 2026 that it had hired a Big Four firm for its first full financial statement audit, without naming the firm or giving a completion date.
Which networks does USDT run on?
USDT is issued natively on 13 networks, according to Tether's supported protocols page, checked on 23 October 2026. Each version is a separate token on its own blockchain.
Tether also says it is "no longer issuing or obligated to redeem" Tether tokens on Kusama, Bitcoin Cash SLP, Omni, EOS and Algorand. Older guides still list some of these as current, so check the date on anything you read.
Polygon, Arbitrum and BNB Chain don't appear on Tether's native list. They do appear on the list of networks supported by USDT0, a related token covered below.
The rule that matters: USDT on Tron and USDT on Ethereum are different tokens on different networks, even though both are worth a dollar. Send USDT on Tron to someone who only accepts USDT on Ethereum, and it won't arrive where they're looking. Use the network the receiver names, then check the address and network before you send.
What is USDT0?
USDT0 is a token backed by USDT that's built to move between blockchains. According to its documentation, original USDT is locked on Ethereum and USDT0 is minted on the destination chain, using LayerZero's Omnichain Fungible Token standard, with "a strict 1:1 backing with the locked assets on Ethereum." Burning USDT0 releases the original. It has its own website and documentation, separate from Tether's native list, so treat it as a related token rather than the same one. Ramp Network supports USDT0 on Stellar, outside the EU.
What is USDT used for?
People use USDT wherever they want a dollar balance that moves like crypto. The common uses:
- Trading. Traders park funds in USDT between trades instead of withdrawing to a bank. Moving from bitcoin into a dollar balance is one step: you can swap BTC for USDT where swaps are available.
- Moving funds between platforms. Sending USDT from an exchange to a wallet, or between exchanges, avoids a bank transfer in the middle.
- Sending money abroad. USDT moves on a blockchain rather than through banks, so the sender and receiver only need wallets on the same network.
- Holding dollars. Where a dollar bank account is hard to get, some people keep savings in USDT. It's still not a deposit, and nothing insures it.
- Payments. Some merchants and freelancers accept USDT, often from clients in other countries.
A lot of readers arrive with a narrower question: what's USDT worth in rand, naira or pesos? Because USDT aims to track the dollar, its value in another currency follows the dollar exchange rate. What you actually receive also depends on the spread and fees of whoever converts it.
Is USDT safe?
USDT is backed by reserves that Tether reports in quarterly attestations, not full audits. Its record includes two 2021 regulatory settlements over those reserves. It has briefly lost its peg before, and Tether can freeze it. How much that matters depends on how much you hold, for how long, and where.
Reserves and transparency
In February 2021, the New York Attorney General settled with Bitfinex and Tether, which agreed to pay $18.5 million in penalties. The Attorney General said Tether's claim that USDT "was fully backed by U.S. dollars at all times was a lie," and required Tether to publish the categories of assets backing it.
Eight months later, the CFTC ordered Tether to pay a $41 million civil penalty. It found that, in a 26-month sample from 2016 to 2018, Tether held enough fiat reserves to back the tokens in circulation on only 27.6% of days.
What's different now is reporting. BIS researchers note that Tether resumed attestation reports in early 2021 "after two and half years without any information," and quarterly attestations have continued since. They're more than Tether published before. They still aren't an audit.
Can USDT lose its peg?
Yes, and it has. A BIS working paper describes Tether temporarily losing its peg in October 2018, amid concerns that it wasn't fully backed by US dollar assets. The price gaps the researchers measured were small, under a cent on average, but they show the peg depends on holders trusting that redemption works.
Freezes
Tether's terms of service let it "freeze any Tether Tokens held by you" and blacklist any address holding Tether tokens if it suspects prohibited use. A blacklisted address can't move its USDT, even in a self-custodial wallet you control.
Most users will never meet this. But it means the issuer keeps a level of control over the token that it doesn't have over, say, bitcoin. A frozen balance stays frozen until Tether acts.
Regulation
In the US, the GENIUS Act, enacted on 18 July 2025 according to the Federal Register, sets rules for payment stablecoins. Permitted issuers must hold 1:1 reserves and publish their reserve composition monthly, and after a transition period US service providers face limits on offering stablecoins from issuers that aren't permitted.
In the EU, MiCA requires issuers of dollar tokens to be authorised there, and which stablecoins you can buy depends on your provider and country. Our comparison article keeps the current MiCA and GENIUS Act timeline up to date.
None of this gives a yes or no. Before holding USDT, it's worth checking a few things:
- the date of Tether's latest attestation, not only the headline total
- that you're using the network your receiver or exchange supports
- how much you keep on any single platform
- that there's no deposit insurance behind the token
How to get USDT and turn it into cash
Can you turn USDT into cash? Yes. You sell it through an exchange or off-ramp and receive money in a bank account or on a card, with payout options depending on your country.
To get USDT, buy it through an on-ramp with a card, bank transfer or local payment method, and pick the network your wallet uses before you pay. On Ramp Network you can Buy USDT with credit or debit cards, Apple Pay, Google Pay or bank transfers, plus local options depending on your region. Ramp Network says "all applicable costs, including network fees, are displayed upfront before you confirm your payment."
Cashing out works in reverse. You can sell USDT to your bank account or card, depending on your country, through bank transfers, card payouts or local instant banking options. Fees vary by payout method, region and currency.
Before you send USDT to sell it, check that the network you're sending from matches the one the sell screen asks for.
Frequently asked questions
How much is $100 of USDT in US dollars?
About $100, because USDT aims to stay worth 1 US dollar per token. On exchanges the price can sit slightly above or below $1, and the amount you receive when you sell also depends on fees and the spread charged by whoever converts it. Check the final figure on the confirmation screen before you sell.
Is USDT the same as a dollar in the bank?
No. A bank deposit is a claim on a regulated bank and may be covered by deposit insurance. USDT is a token issued by a private company, backed by reserves it reports in quarterly attestations, with no deposit insurance. Tether can also freeze tokens at addresses it suspects of prohibited use.
Which USDT network should I use?
Use the network your receiver, exchange or wallet supports for USDT, because tokens on different networks are separate. USDT on Tron uses addresses starting with T, while USDT on Ethereum uses 0x addresses, and the network fees differ. If you're unsure, ask the receiver which network they expect and send a small test amount first.
Can I lose money holding USDT?
Yes. USDT can trade below $1, it has briefly lost its peg before, and Tether can freeze tokens at specific addresses. You can also lose USDT by sending it on the wrong network or to the wrong address. Its value in your local currency moves with the dollar exchange rate.
What's the difference between USDT and USDC?
Both are dollar stablecoins, but they come from different issuers. Tether issues USDT and reports reserves in quarterly attestations. Circle issues USDC and publishes its reserves more often. They run on overlapping but different sets of networks, and their regulatory status differs between the US and the EU.
---
Ramp Swaps (Ireland) Limited trading as Ramp Network is regulated by the Central Bank of Ireland.
Using Top up, Buy or Sell services:
Using self-custodial wallet including send feature:
Matt Marshall, Argent Product Manager, stated:
"For people newer to the space, it’s not feasible for them to be using multiple wallets and bridging from Ethereum to zkSync and then to their Argent wallet. Easy on-ramp plays a key part in onboarding the next million people to crypto."
