USDT's operational mechanism offers a significant advantage to traders as it provides a level of stability in a notoriously unpredictable market. This stability is achieved through a reserve and issuance system that has so far proven to be reliable.
The stablecoin is backed by reserves that the company Tether looks after. The reserves are made up of a mix of US Treasurys, cash and other assets.
USDT is one of the most widely used stablecoins, boasting a long history and strong solvency despite some controversy surrounding its reserve and issuance system. About half of all USDT tokens exist on the Tron blockchain with another significant supply on Ethereum.
