Introduction to Tether (USDT)
Tether (USD₮ or USDT) is the world's leading cryptocurrency stablecoin, launched in 2014 by Tether Limited Inc. Pegged 1:1 to the US dollar, it maintains stability while operating independently of central bank digital currencies. As of August 2024, Tether boasts:
- $118.4 billion in total reserves
- $5.3 billion in excess reserves
- **$1.3 billion** Q2 2024 profit ($5.2 billion H1 total)
- $11.9 billion net equity
- $114+ billion market capitalization
Market Dominance and Adoption
👉 Discover how Tether maintains its stablecoin supremacy
Tether commands 70% of stablecoin market share and surpassed Bitcoin in 2019 as the most traded cryptocurrency globally. Key adoption metrics include:
- 350+ million users worldwide (July 2024)
- Supported across 14 blockchain protocols
- Primary stablecoin for Bitfinex exchange (owned by parent company iFinex)
Reserve Composition and Transparency
Tether's reserve structure demonstrates its stability mechanism:
- Cash & Cash Equivalents: 85% of total reserves
- US Treasury Bills: 12% allocation
- Other Investments: 3% diversified holdings
The company publishes quarterly attestations showing:
- Detailed reserve breakdowns
- Excess reserve positions
- Profit/loss statements
Frequently Asked Questions
How does Tether maintain its peg to the US dollar?
Tether employs a 1:1 reserve system where each USDT in circulation is backed by equivalent USD or assets of equal value. The company regularly publishes reserve reports for transparency.
What makes Tether different from other stablecoins?
Three key differentiators:
- First-mover advantage (launched 2014)
- Unparalleled liquidity across exchanges
- Multi-chain compatibility (14 supported networks)
Is Tether available on all major exchanges?
👉 Explore Tether trading pairs on top platforms
Yes, USDT serves as the primary trading pair on 95% of cryptocurrency exchanges, including:
- Binance
- Coinbase
- Kraken
- Bitfinex
Global Impact and Future Outlook
Tether's market dominance continues growing, with recent developments including:
- Expansion into emerging markets
- Increased institutional adoption
- New blockchain integrations
The stablecoin's $5.2 billion H1 2024 profit demonstrates strong financial health, positioning it for continued leadership in the digital asset economy.