USDT Tether is a stablecoin pegged to the U.S. dollar, issued by the company Tether, and is used to replace the U.S. dollar in cryptocurrency transactions. The working principle is that Tether holds U.S. dollar reserves and deposits equivalent U.S. dollars for every USDT issued to ensure the stability of USDT value. The advantages of USDT are stability, liquidity and availability, but there are potential risks of regulatory risks, volatility and centralization.
What is USDT?
USDT Tether is a stablecoin pegged to the U.S. dollar, issued by Tether. It is the largest stablecoin by market capitalization and serves as an alternative medium to the U.S. dollar in cryptocurrency trading.
How USDT Tether works
USDT The value peg between Tether and the US dollar is maintained through US dollar reserves held by the Tether company. For every USDT issued, Tether will deposit the corresponding U.S. dollars in its bank account. This ensures that the value of USDT remains stable against the US dollar.
Advantages of USDT Tether
Potential risks of USDT Tether
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