Topic
What is USDT?
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- Quick fact 1
USDT is a stablecoin issued by a company called Tether. It's designed to stay worth $1.
Source: Tether, Transparency
- Quick fact 2
Tether publishes regular reports on the reserves it says back USDT.
Source: Tether, Transparency
- Quick fact 3
USDT runs on several blockchains, so the network you send on has to match the one that receives it.
Source: Tether, Supported Protocols
The short lesson
USDT, also called Tether, is a stablecoin. That means it's a crypto token built to hold a steady value of one US dollar. Tether, the company, says each token is backed by reserves such as cash and short-term US government debt.
People use USDT because it moves like crypto but is priced like a dollar. That's why searches like "what is USDT in Colombia" and "USDT to INR" are common in places like Medellín and Hyderabad.
USDT vs USDC. Both are dollar stablecoins, but different companies issue them. USDC is issued by Circle. They differ in who holds the reserves, how those reserves are reported, and which rules apply. This page explains the difference. It doesn't recommend either one.
Why the network matters. The same USDT token runs on more than one blockchain. Labels like TRC20 (the Tron network) and ERC20 (the Ethereum network) tell you which one. If you send USDT on one network to an address that only works on another, you can lose it.
Risks to know:
- USDT isn't a bank deposit, and it isn't FDIC-insured.
- Its value depends on Tether really holding its reserves. In 2021, US regulators fined Tether over past claims it made about those reserves.
- During market stress, USDT has briefly traded below $1.
- Payments are usually final.
Related terms
Common questions
Is USDT the same as a US dollar?
No. It's a token that aims to stay at $1. Getting a real dollar back depends on Tether and on the platform you use.
What does USDT TRC20 mean?
It means USDT on the Tron network. ERC20 means USDT on Ethereum. The sending and receiving networks have to match.
What's the difference between USDT and USDC?
They're dollar stablecoins from two different companies, Tether and Circle, with different reserves, reports, and rules.
What are the risks of USDT?
It depends on the issuer's reserves, it isn't insured, it can briefly slip below $1, and sending on the wrong network can mean losing it.