What is Tether? The Tether definition is pretty simple. Tether (USDT) is a stablecoin cryptocurrency, with every token geared toward monitoring the worth of 1 U.S. greenback. Assets pegged to the worth of national currencies (fiat currencies) are known as stablecoins. Individuals can promote other cryptocurrencies for USDT to guard towards volatility whereas sustaining the ability to ship the asset to personal wallets or storage. Ethereum, in addition to different blockchains, host USDT.

If you’re all for collaborating in a specific blockchain or DeFi protocol, then you’ll want to ensure the stablecoin you choose is supported on that community. USDC and USDT can each be used for lending, staking, and providing liquidity for trading pairs, though the returns and performance for each could vary.

Tether has been the target of a lot of FUD due to its murky stability sheet and lack of a public audit. The company has repeatedly been fined for deceptive statements around the state of its books. After Tether released a primary breakdown of its balances, it got here beneath even more scrutiny from regulators over its claims that every one issued stablecoins are totally backed by greenback reserves.