Tether (USDT) is a collateralized stablecoin.
1 USDT is equivalent to 1 USD. Its parity is backed by a reserve managed by the company Tether Limited.
As with USD Coin (USDC), it is issued according to the needs of users, who deposit dollars into Tether accounts to obtain USDT in exchange. Each USDT is backed by dollars and other financial assets deposited in a bank account, which guarantees stability in its price. It has the same characteristics as bitcoin and ether in terms of facility to transfer and custody of funds, although it is not subject to volatility.
It is the most widely used stablecoin for trading on different trading platforms.
In addition to USDT, there are other popular stablecoins, such as DAI and USDC.
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