English
RussianWhat Is a Stablecoin and How Does USDT Work?
A stablecoin is a cryptocurrency whose price is pegged to a regular currency, usually the US dollar.
The largest are Tether's USDT and Circle's USDC. Each token is backed by a dollar in the issuer's reserves: cash and short-term US Treasuries. That is why 1 USDT almost always trades near $1.
On exchanges stablecoins stand in for the dollar: traders park funds in them between trades, pairs like BTC/USDT are priced in them, and money moves between exchanges through them. Their share of the market — USDT dominance — rises when traders move to cash.
They carry risks too: the issuer can freeze an address, and on stressful days the price can briefly slip away from $1.
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Frequently asked questions
Is USDT the same as a dollar?
No. It is a token issued by Tether, backed by dollar reserves and trading around $1.
What is the difference between USDT and USDC?
The issuer and reporting: USDT comes from Tether, USDC from US-based Circle with monthly attestation reports. Both trade near $1.