What is USDT
Tether (USDT) is a stablecoin cryptocurrency pegged to the value of the United States dollar. One of the first and most well-known stablecoins, Tether was created with the goal to enhance cryptocurrency valuation stability and encourage decentralized trading and smart contract integration while maintaining a 1:1 ratio with USD value. Available on Bitcoin layer protocol Omni, Ethereum network ERC-20, or Binance Smart Chain BEP-20 token standard, USDT is one of the first and most well-known stablecoins. Tether hopes to provide a bridge between fiat and cryptocurrency, combining the unrestricted nature of crypto with the stability of US currency. USDT was launched in 2014 as Realcoin by Blockchain Capital founder Brock Pierce, advertising executive Reeve Collins, and Omni Foundation member Craig Sellars. Tether maintains its peg to the value of USD by allocating the equivalent amount of USD to its bank reserves, thus ensuring the value of USDT is fully backed by cash or cash equivalents. In February 2021 Tether published an attestation verifying its holdings of over $35 billion in assets against a total of $35.15 million in liabilities.