Stablecoins

Key Takeaways Tether (USDT) is the largest stablecoin and the third-largest cryptocurrency overall, pegged 1:1 to the US dollar and backed by reserves of cash, US Treasuries, and other assets. It is the main liquidity layer of crypto, used in most trading pairs, for cross-border payments, and as a digital dollar in countries with unstable local currencies. USDT faces ongoing transparency and reserve-quality scrutiny, was rated "weak" by S&P in late 2025, and is not authorized for issuance in the EU under MiCA. In This Article Market Size and Key Figures How USDT Works: Blockchain and Backing Why Tether Is Widely Used Regulatory Landscape and EU Restrictions Risks, Controversies, and Transparency Issues Broader Market Impact Alternatives to Tether (USDT) Why Tether (USDT) Matters in 2026 Tether (USDT) is the largest stablecoin in the global cryptocurrency market, a type of digital asset designed to hold a stable value by being tied to a traditional currency rather than floating freely like Bitcoin or Ethereum .