What is Tether?

Tether (USDT) is a cryptocurrency designed to maintain a value that mirrors the U.S. dollar, categorizing it as a stablecoin. It aims to provide stability in the volatile cryptocurrency market and facilitate liquidity on exchanges that face challenges with traditional banking. Tether Limited, incorporated in Hong Kong and governed by the laws of the British Virgin Islands, issues these digital coins. It asserts that USDT is fully backed by U.S. dollars held in reserve.

The cryptocurrency utilizes blockchain technology and can be transferred between Omni Layer-enabled wallets and various exchanges, allowing users to trade it for other cryptocurrencies like Bitcoin. While Tether transactions have no internal fees, external wallets or exchanges may impose charges. Tether enables users to convert between USDT and USD through the Tether.to platform, which may incur a small fee for the transition.