Tether (USDT) is a stablecoin designed to stay close to the value of one US dollar. It is one of the most widely used stablecoins in crypto markets.
What USDT is used for
Traders use USDT to move between crypto assets without returning to bank money. It is also used for payments, transfers, and liquidity in some DeFi markets.
What to watch
Stablecoins depend on trust in the issuer, reserves, redemption process, and legal environment. USDT can be useful, but users should understand that a stablecoin is not the same as a bank deposit.
USDT is often compared with USD Coin (USDC), another major dollar-pegged stablecoin.