#USDT. Alright — let’s break down #USDT (Tether) 💵🔗
The biggest, most-used stablecoin in the world — and also one of the most watched 👀.
🧩 What is USDT?
🔹
Name Tether (USDT)
Type Fiat-backed stablecoin
Pegged to $1 USD
Blockchain Support Ethereum (ERC-20), Tron (TRC-20), Solana, BSC, Polygon, and more
Market Cap ~$100B+ (largest stablecoin, April 2025)
🔐 How It Works
Issued by: Tether Ltd.
Backed by: Cash, T-bills, secured loans, precious metals, and other reserves.
Minting/Burning: USDT is created when institutions deposit fiat; burned when they redeem.
🧠 TL;DR — Tether takes USD, mints USDT. You send back USDT, they burn it & give you USD.
🌐 Where is USDT Used?
Use Case Why
💱 Crypto Trading Pairs Most CEXs use USDT as a base pair
🚀 On-chain DeFi Lending, farming, LPs
💸 Cross-border transfers Cheap & fast USD proxy
🛒 Merchant payments Especially in regions with unstable currencies
USDT is especially dominant on Tron (TRC-20) for low fees & fast speed in P2P and cross-border transactions (huge in LATAM, Africa, Asia).
⚠️ Controversies & Criticism
Past questions about reserve transparency 🔍
Legal settlements with NYAG in 2021
Concerns over exposure to Chinese commercial paper (now mostly replaced by U.S. T-Bills)
Current stance: Tether claims >85%+ of reserves are in short-term U.S. T-bills, with monthly attestation reports from BDO.
🛡️ Safety Tips When Using USDT
Double-check chain (TRC-20 vs ERC-20 = HUGE gas fee difference)
Don’t send USDT to the wrong network address — funds may be unrecoverable
Use block explorer to confirm balances before sending
For high amounts, consider on-chain verification tools like:
Tether Transparency
USDT on Etherscan