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
Implementation Details
The implementation of the USDT representation mechanism contains several logical parts:
- The issuing and redemption process
- The peg maintenance and stabilization processes
The issuing process
Tether Limited issues USDT on all supported blockchains using the token smart contracts an example of USDT contract on Ethereum. Such smart contracts contain issuance and redemption functions, all belonging to the contract ownership.
These functions are utilizable by Tether to mint USDT, burn USDT (from the owner’s address), blacklist addresses, remove them from the blacklist, and destroy USDT tokens possessed by the blacklisted addresses.
The list of networks where Tether Limited issues native USDT is available at this page.
The peg maintenance and stabilization
Tether Limited maintains the peg of USDT using its collateral reserves. Also, there is some additional information from the official source regarding addressing peg stability during the complicated market conditions.
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.