What is USDT
Tether (USD₮) is a fiat stablecoin launched in 2014 by Tether Limited. It was first issued on the Bitcoin blockchain but is now available on other blockchains including Algorand, Avalanche, Ethereum, EOS, Liquid Network, Near, Omni, Polygon, Solana, Bitcoin Cash Standard Ledger Protocol, Statemine, Statemint, Tezos, and Tron. The aim of USD₮ is to provide the benefits of a cryptocurrency, such as fast and secure transactions, without the volatility often associated with other crypto assets. Each USD₮ token represents one US dollar in a 1:1 ratio, and Tether Limited claims to hold an equivalent amount of US dollars in reserve for every USD₮ token issued, to maintain the price peg at $1. However, there has been controversy over whether Tether Limited has enough reserves to back up all tokens in circulation. Despite this, USD₮ has become one of the most widely used cryptocurrencies in the world and is used by traders, investors, and the decentralized finance (DeFi) community. USD₮ plays a key role in providing liquidity for centralized and decentralized exchanges, allowing users to engage in trading, lending, borrowing, and other financial activities. As a result of its wide adoption and acceptance, an increasing number of merchants are now accepting USD₮ as form of payment. In addition to its flagship USD stablecoin (USD₮), Tether Limited issues stablecoins for multiple fiat currencies including the Euro (EUR₮), the offshore Chinese Yuan (CNH₮), the Mexican Peso (MXN₮), and the British Pound Sterling (GBP₮). Tether has also developed Tether Gold (XAU₮), a stablecoin backed by physical gold reserves, with each token representing one troy ounce of gold held in a Swiss vault. Tether Limited has been audited by several audit and assurance companies to provide transparency and demonstrate that Tether Limited has enough reserves backing the USD₮ and other stablecoins in circulation. The latest report by BDO Italia as of December 31, 2022, shows that Tether's consolidated total assets exceed its consolidated total liabilities, with consolidated assets of at least $67,044,148,175 and consolidated liabilities of $66,083,530,757, of which $66,057,260,169 is related to digital tokens issuance.