Tether $USDT
The USDT token is a stablecoin pegged to the value of the US dollar. It is controlled, issued, and redeemed by a central authority (Tether Limited Inc, hereafter Tether) and backed by at least an equivalent dollar value in cash and assets held by Tether.
Token PageTether token design description
TL;DR
- USDT derives its value from a 1:1 peg to the USD, acting as a representation token; a stablecoin backed by collateral reserves held by Tether Limited, reflecting a digital representation of $1.00, despite occasional minor fluctuations.
- Tether Limited issues and redeems USDT, guaranteeing one-to-one redeemability for verified clients, subject to conditions like a historical minimum threshold (which may vary), KYC/AML compliance, and fees, with retail users typically relying on exchanges.
- USDT enables DeFi integration across blockchains, leveraging its pegged value for trading and liquidity with no additional governance or staking features.
Economic Summary
The USDT token is a centralized stablecoin representing the value of the US dollar. Its value originates from a Representation Origin of Value (OoV).
The issuance/redemption of USDT and the maintenance of its representation value is maintained by a central authority - Tether Limited. The USDT is backed by at least an equal dollar value in cash and assets held by Tether.