Tether (USDT) is a stablecoin pegged to the US dollar at a 1:1 ratio, aiming to provide a less volatile digital currency by tethering its value to the US dollar regardless of market conditions. It is one of the most widely adopted stablecoins, offering a safer digital asset less affected by market volatility compared to cryptocurrencies like Bitcoin.
Tether tokens are digital stablecoin assets pegged to real-world currencies, allowing for easy movement across blockchains while maintaining price stability.
Tether has faced controversies regarding the transparency of its reserves, with claims that each USDT token is backed by one dollar in reserves. Tether is used by crypto traders for transfers between different cryptocurrencies or to move investments into or out of fiat currencies, providing a low volatility digital asset that maintains a steady valuation.