Plain English
Tether Limited is the issuer of USDT, the largest stablecoin by market cap ($140B+ outstanding in 2026). Founded in 2014 in Hong Kong, currently headquartered in El Salvador. Operated controversially through the 2010s with disputed reserve attestations; reserves are now audited quarterly by BDO Italia.
How it actually works
Reserves backing USDT consist primarily of US Treasury bills (over 75% of reserves), with smaller allocations to repurchase agreements, money market funds, gold, and Bitcoin. Reports significant quarterly profits — billions per year from interest on Treasury holdings. Settled with NY AG and CFTC in 2021 over historical reserve misrepresentations.
What it means for you
For HNW users, USDT is the largest, most-liquid stablecoin globally — particularly dominant in non-US markets and on TRON. Trade-offs: lower transparency than USDC, ongoing regulatory uncertainty in some jurisdictions (banned in EU under MiCA from 2024). For US-based holdings, USDC is the more regulated alternative; for global liquidity, USDT is essential.
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Educational content only. Not investment, tax, or legal advice.