How does the USDT stablecoin work on the blockchain?

3 answers

• MainuddeenJul 03, 2025 · a month ago
  USDT, also known as Tether, is a stablecoin that is designed to maintain a value equal to that of the US dollar. It operates on the blockchain, specifically the Omni Layer protocol. The purpose of USDT is to provide a stable digital currency that can be used for trading and storing value, without the volatility often associated with other cryptocurrencies. It achieves this stability by being backed by reserves of fiat currency, such as US dollars, held by the issuing company. The company claims that for every USDT in circulation, there is an equivalent amount of fiat currency held in reserve. This backing gives USDT its value and ensures that it can be redeemed for the underlying fiat currency if desired. Transactions involving USDT are recorded on the blockchain, providing transparency and immutability to the process.
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• ChachlykkOct 22, 2022 · 3 years ago
  USDT, also known as Tether, is a stablecoin that operates on the blockchain. Its purpose is to provide a digital currency that maintains a value equal to that of the US dollar. Unlike other cryptocurrencies, which can be highly volatile, USDT is designed to be stable, making it a popular choice for traders and investors. The value of USDT is maintained through a combination of factors, including the backing of fiat currency reserves and the use of smart contracts on the blockchain. These smart contracts ensure that the supply of USDT is always equal to the amount of fiat currency held in reserve, providing confidence in its stability. Transactions involving USDT are recorded on the blockchain, making them transparent and secure.
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• RatevyraJul 02, 2020 · 5 years ago
  USDT, also known as Tether, is a stablecoin that operates on the blockchain. It is designed to maintain a value equal to that of the US dollar, providing stability in the volatile world of cryptocurrencies. USDT achieves this stability by being backed by reserves of fiat currency, such as US dollars, held by the issuing company. For every USDT in circulation, there is an equivalent amount of fiat currency held in reserve. This backing ensures that USDT can be redeemed for the underlying fiat currency at any time. The transactions involving USDT are recorded on the blockchain, making them transparent and secure. USDT has gained popularity among traders and investors who seek a stable digital currency for their transactions and investments.
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