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USDT (Tether) The Backbone
of Crypto Stability

Launched in 2014, USDT, is better known as Tether and has become the most widely used stablecoin in the world. Pegged 1:1 to the US dollar, USDT combines the speed of crypto with the stability of traditional currency. It’s the go-to asset for traders and investors looking to escape market volatility without cashing out to fiat.

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The History of USDT

Founding and Early Years

2012

J.R. Willett published a white paper outlining the possibility of building new cryptocurrencies on top of the Bitcoin blockchain, which laid the conceptual groundwork for Tether.

July 2014

The precursor to Tether, initially named “Realcoin,” was announced by co-founders Brock Pierce, Reeve Collins, and Craig Sellars. It aimed to enable seamless arbitrage between crypto exchanges by leveraging blockchain technology for a common settlement network.

The precursor to Tether, initially named “Realcoin,” was announced by co-founders Brock Pierce, Reeve Collins, and Craig Sellars. It aimed to enable seamless arbitrage between crypto exchanges by leveraging 

October 2014

The first Realcoin tokens were issued on the Bitcoin blockchain using the Mastercoin protocol.

November 2014

The project was rebranded to “Tether,” and a private beta was launched supporting USTether (US+), EuroTether (EU+), and YenTether (JP+). Tether Holdings Limited was incorporated in the British Virgin Islands.

2015

Tether’s adoption increased significantly after it was acquired by new owners (the Bitfinex crypto exchange) and integrated into Bitfinex ecosystem.

2017

USDT’s market cap surpassed $1 billion. This period also saw increased scrutiny and banking challenges for Tether.

2018-2019

USDT’s market cap continued its rapid ascent, reaching $2+ billion in 2018 and $25+ billion in 2019, solidifying its position as a dominant stablecoin.

2020

Tether launched XAUT, a stablecoin backed by physical gold, diversifying it’s offerings.

Ongoing Blockchain Expansion

While initially on Bitcoin, USDT has expanded to numerous other prominent blockchains, including Ethereum (ERC-20), Tron (TRC-20), EOS, Solana, and Algorand, increasing its accessibility and utility across the crypto ecosystem.

2022

Tether, alongside the City of Lugano, launched Lugano’s Plan B and also launched a decentralized communication tool, “Keet.”

2023

Tether began actively mining and acquiring Bitcoin and made strategic investments in various companies related to digital infrastructure and energy. They also signed MOUs with governments for digital asset initiatives.

2024

USDT’s market cap reached over $100 billion, further cementing its leadership in the stablecoin market. Tether also launched new products like Tether Evo and Alloy by Tether.

Controversies and Transparency Efforts

Tether has faced ongoing scrutiny over the transparency and backing of its reserves.

Since 2017, critics have questioned whether USDT is fully backed and raised concerns about banking relationships and potential market manipulation.

In 2019, the NY Attorney General revealed Tether used reserves to cover Bitfinex losses, leading to a 2021 settlement requiring quarterly reserve disclosures.

Tether has since improved transparency by publishing attestations and shifting reserves from commercial paper to mostly US Treasuries. However, the absence of a full independent audit remains a key issue.

Despite controversies, Tether remains the largest stablecoin, vital for market liquidity and cross-border crypto transactions, while continuing to expand its product offerings and blockchain support.

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How USDT (Tether) Works

USDT, or Tether, is among the most widely adopted stablecoins in the global cryptocurrency market. It is designed to maintain a 1:1 peg with the US dollar, meaning each USDT token is intended to be backed by an equivalent value held in reserve.

This price stability makes USDT a preferred choice for traders and investors looking to reduce exposure to market volatility while still benefiting from the speed, low cost, and flexibility of blockchain-based transactions.

USDT is actively used across centralized exchanges, DeFi platforms, and cross-border remittance systems, serving as a seamless bridge between traditional fiat and digital assets.

Beyond trading, USDT enables fast, stable, and efficient transfers of value without the delays, fees, or limitations of traditional financial systems.

However, despite its utility and widespread adoption, concerns persist around the transparency and auditing of its reserve assets. These concerns have drawn attention from regulators and analysts, prompting ongoing discussions about the long-term reliability and oversight of Tether’s operations.