Blockchain 101 Episode 85 – Asset Tokenization – USDT, Backed by US Dollar

USDT is a token backed by the US Dollar and issued by Tether.

1 USDT is equal to 1 USD, Users can convert USDT to USD at a 1 : 1 exchange rate.

Tether implemented a 1 : 1 reserve system, where each USDT Token is backed by 1 US dollar, forming a support for the USDT market price.

A particular digital asset denominated in USDT is equivalent to its price in US Dollars. As USDT’s value is equivalent to USD, its price is the most stable among cryptocurrencies.

During times of huge market fluctuations, users can exchange their crypto holdings to USDT, preserving the value of their investments.

Users may use bank transfer USD to Tether’s bank account or go through exchange platforms such as to obtain USDT.

Vice versa for redemption of US Dollars.

Users can also exchange for USDT using Bitcoins on an exchange platform.