USDT (Tether) is a stablecoin, a cryptocurrency pegged to the value of a traditional fiat asset, in this case the US dollar (USD). USDT aims to maintain a stable price of approximately $1, making it a popular means of storing and transferring value in cryptocurrency transactions.
Unlike other cryptocurrencies such as Bitcoin or Ethereum, whose price can fluctuate significantly, USDT’s value remains stable due to its peg to the dollar. This is achieved by Tether Limited, a company that claims to reserve fiat dollars in banks for every USDT issued.
USDT is widely used on cryptocurrency exchanges as a replacement for the dollar for trading and to protect assets from market volatility.
