What is Tether?

Tether (USDT) is a stablecoin that is designed to maintain a stable value of 1 US dollar per USDT token. It was launched in 2014 and is one of the oldest and most widely used stablecoins in the cryptocurrency ecosystem.

Like other stablecoins, Tether is designed to provide the benefits of cryptocurrency, such as fast and low-cost transactions, while also maintaining a stable value that is not subject to the same volatility and fluctuations as other cryptocurrencies like Bitcoin. Tether achieves this stability by being pegged to the U.S. dollar, with each USDT token backed by an equivalent amount of U.S. dollars held in reserve by Tether Limited, the company that issues the stablecoin.

Tether is built on several different blockchains, including Ethereum, Bitcoin, and Tron, and is used by a wide range of cryptocurrency traders and investors. It can be used to trade against other cryptocurrencies on cryptocurrency exchanges, and it is also used by merchants and businesses as a means of payment for goods and services.

While Tether has become a popular and widely used stablecoin, it has also faced criticism and controversy. Some critics have raised concerns about the transparency and reliability of Tether's reserves, and there have been allegations that Tether may not have sufficient reserves to back all of the USDT tokens in circulation. As a result, there have been calls for greater regulatory oversight and transparency around Tether's operations and reserves.

The article does not constitute financial advice.

Start with crypto today

Sign up on NBX, a trusted Norwegian cryptocurrency exchange and custodian, and kickstart your crypto journey safely.
Crypto 101
Explore the most popular crypto terms and find answers to your questions.

How is blockchain secured?

Read

What is a bug bounty program?

Read

What is the difference between Ethereum and Bitcoin?

Read

What is NFT?

Read

What is a Private Key?

Read

What is the ERC20 standard?

Read

What is an option and why should I care?

Read

What is a time horizon?

Read

What is Polkadot?

Read
Blog

Insights, Trends, Analysis

Unraveling the cryptocurrency industry revolution.
#crypto101

Adoption of USDM in the Cardano community and NBX trade of USDM in Q4 2024

This article explores the growing adoption of USDM within the Cardano ecosystem and provides an update on NBX's plans to launch ADA/USDM trading now soon in Q4 2024.
2 minutes
2024-10-28
#crypto101

Women in the Cardano ecosystem

NBX takes a look at some of the women that makes the Cardano ecosystem.
2 minutes
2024-10-15
#crypto101

NBX ADA OCTOBER 9-16 TRADING COMPETITION WITH USDM PRIZES

NBX is launching USDM in Q4 2024 and our first event to celebrate this is an ADA trading competition with USDM prices.
2 minutes
2024-10-08
Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.