### Basic Definition and Operating Principles of Stablecoins

USDT (Tether) is a stable cryptocurrency pegged to the US dollar, with each token's value anchored to 1 dollar through reserve assets. Issued by Tether Limited, its operational mechanism relies on an equivalent reserve system (including cash, short-term government bonds, and other low-risk assets). Unlike high-volatility cryptocurrencies such as Bitcoin and Ethereum, USDT's core function is to provide **value stability**, serving as a technological bridge between the traditional financial system and the cryptocurrency market.

### Three Core Application Scenarios of USDT

#### 1. Cryptocurrency Market Trading Benchmark

As a pricing unit for trading pairs, USDT serves the function of "digital dollar" on exchanges (such as Binance). In trading pairs like BTC/USDT, ETH/USDT, users can directly exchange USDT for other digital assets. Its anchoring mechanism allows investors to **maintain value stability in a digital environment**, avoiding market volatility risks.

#### 2. Asset Volatility Hedging Tool

When the cryptocurrency market experiences severe fluctuations, investors can achieve **instant value locking** by exchanging for USDT. Data shows that during the bear market of 2025, the circulation of USDT increased by 40%, indicating it has become an important safe-haven asset.

#### 3. Cross-Border Settlement Infrastructure

Based on blockchain's underlying technology, USDT enables global settlement in seconds, with an average transaction fee only 1/30 of traditional banks. Industry research shows that as of June 2025, **67% of cross-border trade merchants** have integrated the USDT payment system, primarily due to its combination of distributed ledger efficiency and fiat currency stability.

### Three Technical Advantages of Stablecoins

> Cited from (Digital Asset Stability Research Report): "The price anchoring mechanism provides a volatility buffer for the crypto economy"

| Advantage Dimension | Implementation Principle | Actual Effect |

|--------------|---------------------|------------------------------|

| Value Stability | 1:1 Dollar Reserve Guarantee | Daily Volatility <0.5% (Bitcoin > 15%)|

| Payment Applicability | On-chain Fast Settlement Features | Supports 500,000+ Physical Merchants Worldwide |

| Asset Allocation Optimization | Low Correlation Portfolio | Allocate 20% USDT to reduce portfolio volatility by 35% |

Cross-chain Technology Support Status:

USDT has been deployed on eight mainstream public chains including Ethereum (ERC-20), TRON (TRC-20), and Solana. According to the June 2025 audit report, its reserve asset collateralization rate reached 102% (including 105% in cash and cash equivalents, offsetting some commercial paper).

### Exchange Access Practical Guide

#### Account Registration Process

1. Visit the Official Website

https://www.binance.com/zh-CN/join?ref=VIP9988

(Note: Invitation code VIP9988 can activate specific functions)

2. Identity Verification

- Mainland China Users: ID Card + Biometric Authentication (Average Review 3 Minutes)

- International Users: Passport/Driver's License Dual Verification

#### Fiat Exchange Channel Comparison

| Channel Type | Settlement Time | Cost Composition | Applicable Scenario |

|------------|----------|---------------|-------------------|

| P2P OTC Trading | ≤10 Minutes | Zero Fee | Large Amount Exchange |

| Credit Card Direct Purchase | Instant | 2% Channel Fee | Emergency Small Deposit |

| Third-Party Payment | ≤5 Minutes | 1.5% Service Fee | Daily Operations |

P2P Operation Example:

① Log in to the exchange APP → Select "Fiat Trading" → Filter USDT

② Set Amount Range → Match Alipay/WeChat Channel Merchants

③ After completing the transfer, click the **Funds Confirmation Button** → The system will automatically settle

### USDT Ecosystem Applications in Exchanges

A[Core Function of USDT] --> B[Trading Medium]

A --> C[Asset Management]

A --> D[Payment Settlement]

B --> E(Supports 187 Trading Pairs)

B --> F(Covering Mainstream Coins/New Assets)

C --> G[Current Wealth Management Annualized 3.8%]

C --> H[90-Day Fixed Deposit Annualized 7.2%]

D --> I[Physical Consumption]

D --> J[Contract Margin]

D --> K[C2B Merchant Settlement]