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Tether is a blockchain-based platform introduced in 2014 that aims to bring traditional fiat currencies into the digital realm. It offers a modern alternative to conventional financial systems by enabling transactions with familiar currencies on the blockchain, avoiding the typical volatility and complexity of other digital assets. As the pioneer in this space, Tether has facilitated cross-border transactions, making them more accessible and efficient.

USD₮ is a digital representation of the U.S. dollar, functioning as a stablecoin with a 1:1 peg to the USD. It leverages blockchain technology to provide a decentralized and secure method for transferring value while maintaining the stability of a well-known fiat currency. This makes it suitable for both individuals and organizations seeking a reliable digital asset.

Tether tokens are digital assets issued on multiple blockchain platforms, including Algorand, Avalanche, Bitcoin Cash's SLP, Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana, Kava, and Statemine. These protocols are open-source and interface with the respective blockchains to facilitate the issuance and redemption of Tether tokens. Each token is fully collateralized by Tether's reserves, and the company publishes regular reports detailing these reserve assets for transparency.

Tether, initially named Realcoin, was founded in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. Pierce is a notable entrepreneur with ventures in crypto and entertainment, including co-founding Blockchain Capital and serving as a director of the Bitcoin Foundation. Collins, the first CEO, previously started companies like Traffic Marketplace and Pala Interactive. Sellars has been involved with the Omni Foundation, which develops a protocol for creating smart-contract-based assets on Bitcoin.

Tether's key differentiator is its commitment to maintaining a 1:1 peg with the U.S. dollar, ensuring each USDT token is backed by an equivalent amount of reserves. This stability shields it from the extreme price swings common in the crypto market, making it a safe haven for investors during volatile periods. It also enables seamless cross-border transactions in dollar equivalents without relying on traditional financial intermediaries. However, questions have arisen about the adequacy of its reserves, occasionally impacting its price.

In July 2022, Tether partnered with Hypercore and Bitfinex to launch Keet, a fully encrypted video chat application. Currently available only for desktop, there are plans for mobile versions. Keet is the first app built on the Holepunch platform, which supports Web3 development. Although initially closed-source, the companies intend to make it open-source by the end of the year. The motivation, according to Tether's CTO, is to promote freedom of speech.

The total supply of USDT is not capped by a fixed algorithm; instead, it is determined by Tether's issuance policies and its actual cash reserves, as each token is claimed to be backed by one U.S. dollar. Tether does not pre-announce issuance schedules but provides daily transparency reports showing its asset reserves and liabilities, which correspond to the circulating supply. As of September 2020, over 14.4 billion USDT tokens were in circulation, backed by $14.6 billion in assets.

USDT does not operate on its own blockchain but exists as a token on other blockchains such as Bitcoin, Ethereum, EOS, Tron, Algorand, Bitcoin Cash, and OMG. Its security is therefore dependent on the underlying consensus mechanisms and hashing algorithms of these respective networks, which provide the necessary protection for transactions and token integrity.

Tether (USDT) is available on numerous cryptocurrency exchanges, often with trading volumes rivaling or surpassing Bitcoin. It is particularly popular on platforms that lack fiat-to-crypto pairs, serving as a proxy for the U.S. dollar. Major exchanges supporting USDT include Binance, OKEx, HitBTC, and Huobi Global, among others.