Stablecoin
Tether (USDT)
USDTData: Coinbase · updated 9/6/2026, 1:02:17 PM
What Tether does
- Aims to maintain a stable 1:1 value with the US dollar
- Used as a base currency for trading pairs on most crypto exchanges
- Lets traders move value between exchanges without cashing out to fiat
- Issued and redeemed by Tether Limited, which reports reserve composition periodically
Risks to know
- Tether's reserve transparency has historically been questioned by regulators and journalists
- Depends on Tether Limited as a counterparty — issuer risk is different from a decentralized asset
- Stablecoins broadly face evolving and uncertain regulation in multiple jurisdictions
- A large share of overall crypto trading volume routes through USDT, so problems with it could have outsized market impact
Where to trade USDT
Top-rated exchanges by CompareCEX Score. Check the exchange's market list for USDT availability before depositing.
Frequently asked questions
How does USDT stay at $1?
Tether Limited says it backs each USDT with reserves (cash, cash equivalents, and other assets) and allows eligible users to redeem USDT for US dollars, which is intended to keep the market price near $1 through arbitrage.
Is USDT the same as a US dollar?
No. USDT is a privately issued token designed to track the value of a US dollar, but holding USDT means holding a claim on Tether Limited's reserves, not an actual dollar deposit at a bank.
Why do so many exchanges use USDT as a trading pair?
USDT was one of the earliest and most widely adopted stablecoins, so it became a default 'dollar-equivalent' pair on many exchanges, letting traders price other assets and move value without needing direct fiat banking rails.
Related coins
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