What is Tether (USDT)?
Tether (USDT) is a fiat-collateralized stablecoin designed to hold a 1:1 value with the US dollar. It is the largest stablecoin in circulation: our data puts its market capitalization at roughly $183.1B, spread across about 130 blockchains. In our stablecoin ratings it ranks 1st of 15 with a best score of 8.97, driven by unmatched scale, reach, and a tight peg.
Is the peg holding?
Yes, at our most recent measurement. We observed a peg deviation of just 0.02% from $1, which is well within the range you would expect for a healthy, deeply liquid dollar token. USDT is one of the most heavily traded assets in all of crypto, and that liquidity is a big reason the peg tends to snap back quickly.
What backs it, and how transparent is that?
Tether states that USDT is backed by reserves that include cash, cash equivalents, and a large allocation to US Treasury bills, alongside other assets. The company publishes quarterly attestation reports from an outside accounting firm. It is important to be precise here: an attestation is a point-in-time snapshot, not a full financial audit, and Tether has faced years of scrutiny and regulatory settlements over historical reserve disclosures. We do not independently verify reserves; we measure market behavior, peg stability, and multichain reach.
Risks and trade-offs
- Centralization: Tether can freeze addresses, and issuance is controlled by a single company.
- Reserve opacity: Disclosure has improved but remains attestation-based rather than audited.
- Regulatory exposure: As the largest issuer, USDT sits squarely in the sights of global regulators.
- No public status page: There is no dedicated uptime/incident page, which cost points in our status criterion.
How we scored it
Our composite score of 8.97 reflects top marks for scale, peg tightness, and reach, each rated 10 in our criteria, pulled down mainly by the absence of a public status page. In short, USDT dominates on liquidity and availability while leaving clear room to improve on operational transparency and reserve disclosure.
Who is it for?
USDT suits traders and users who need the deepest liquidity and the widest exchange and chain support, especially in markets where USDT is the default quote asset. It is less appealing for those who prioritize fully audited, regulated reserves; for that profile, some competitors offer stronger transparency guarantees. Never treat any stablecoin as risk-free cash.