Tether (USDT) is a cryptocurrency token issued on the Bitcoin blockchain through the Omni Layer Protocol. It is also known as a stablecoin because its value is meant to always remain close to $1 USD, with each USDT representing one US dollar at all times.
The Tether protocol, developed by Tether Limited, is a platform for fiat-backed token issuance and trading. It allows users to transact in crypto using fiat currencies with no need for a traditional financial institution such as a bank. The purpose of Tether is to bridge the gap between traditional finance and digital assets.
Crypto owners can put their assets into Tether in exchange for US dollars, allowing them to move their capital safely and conveniently between traditional and digital economies. It also makes it possible to buy and sell cryptocurrencies on exchanges without having to use a credit or debit card or open a bank account, making the process simpler and faster.
Tether is one of the most popular cryptocurrencies available today, with millions of tokens in circulation. Like its crypto peers, it can be sent quickly and safely to any address with minimal transaction fees. In addition, since it is pegged to the US dollar, it can be traded at a stable value on exchanges without the need for buyers and sellers to invest in traditional financial instruments like bonds.
This makes it an ideal solution for those who need to move money back and forth between fiat and crypto or need to hedge against price volatility.