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USDT Meaning

USDT, also known as Tether, is a fiat-collateralised stablecoin designed to maintain a 1:1 value with the US dollar. Issued by Tether Limited, USDT is backed by a reserve of cash, cash equivalents, and other assets, though the composition of these reserves has been a subject of scrutiny.

Traders and investors use USDT to hedge against volatility, move funds quickly between exchanges, and denominate contracts in a stable currency without exiting the crypto ecosystem. USDT exists on multiple blockchains, including Bitcoin (via the Omni Layer), Ethereum (as an ERC‑20 token), Tron, and others.

While USDT provides convenience and liquidity, users must trust that the issuer maintains adequate reserves and complies with regulatory standards.

Ongoing audits and increased transparency are key to sustaining confidence in the stablecoin’s peg.

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