ARCIPEDIA · STABLECOIN

Plain English

USDT (Tether) is the largest stablecoin by trading volume. Pegged 1:1 to the US dollar, backed by reserves held by Tether Limited. The dominant stablecoin on global exchanges and outside-the-US trading desks.

How it actually works

Tether issues USDT when reserves are added, and burns it when redeemed. Reserve composition has historically been more opaque than USDC’s, though Tether now publishes regular attestations. USDT trades on Ethereum, Tron, Solana, and dozens of other chains. Tron is the largest USDT network by volume due to its low fees.

What it means for you

For members operating internationally — especially in Latin America, MENA, and Asia — USDT is often the path of least resistance for moving dollar value. The trade-off is issuer risk: less regulatory clarity than USDC.

How ARCrypto teaches this

We teach the practical use of USDT versus USDC: where each makes sense, the diversification logic, and the operational practices that protect against issuer-specific risk.

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Educational content only. Not investment, tax, or legal advice.