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Driving the Future of Money

Tether tokens are the most widely adopted stablecoins, having pioneered the concept in the digital token space. A disruptor to the conventional financial system and a trailblazer in the digital use of traditional currencies, Tether Tokens support and empower growing ventures and innovation throughout the blockchain space. Tether Tokens exist as a digital token built on multiple blockchains.

100% backed and fully transparent

All Tether tokens (USD₮) are pegged at 1-to-1 with a matching fiat currency and are backed 100% by Tether’s reserves. We publish a daily record of the current total assets and reserves.

Widespread adoption

From being the first, to the most used, stablecoin, and one of the most traded tokens by volume, Tether tokens have come a long way. Tether tokens are today the most widely adopted stablecoins across major exchanges, OTC desks, and wallets, including:

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The token that is disrupting the global financial industry

Tether for Individuals

Tether tokens offer exceptional liquidity on tier one exchanges giving traders the ability to take advantage of arbitrage opportunities in the fastest time possible.
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Tether for Merchants

For merchants, integrating Tether tokens opens up an array of opportunities for consumers to purchase products and services.
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Tether for Exchanges

Tether tokens play a pivotal role in the digital token ecosystem and are the most actively traded in terms of 24-hour volume.
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FAQs

What is Tether?

Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. Tether works to disrupt the conventional financial system via a more modern approach to money. Tether has made headway by giving customers the ability to transact with traditional currencies across the blockchain, without the inherent volatility and complexity typically associated with a digital currency. As the first blockchain-enabled platform to facilitate the digital use of traditional currencies (a familiar, stable accounting unit), Tether has democratised cross-border transactions across the blockchain.

Tether tokens exist as digital tokens built on several leading blockchains, including Algorand, Bitcoin Cash’s Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Tron and Solana. These transport protocols consist of open source software that interface with blockchains to allow for the issuance and redemption of Tether tokens.

Every Tether token is 100% backed by our reserves, which includes traditional currency and cash equivalents, and may include other assets and receivables from loans made by Tether to third parties.

The Tether platform is fully reserved when the sum of all Tether tokens in circulation is less than or equal to the value of our reserves. Through our Transparency page, anyone can view both of these numbers on a daily basis.

Tether was originally created to use the Bitcoin network as its transport protocol—specifically, the Omni Layer—to allow transactions of tokenised traditional currency. Since this original version of Tether uses the Bitcoin blockchain, it inherits the inherent stability and security of the longest established blockchain network.

Tether on the Ethereum blockchain, as an ERC20 token, is a newer transport layer, which now makes Tether tokens available in Ethereum smart contracts or decentralized applications on Ethereum. As a standard ERC20 token it can also be sent to any Ethereum address.

Since Tether tokens are currently available using different transport protocols, when users send Tether tokens to other addresses, they need to carefully check the destination address to confirm they are selecting the correct transport protocol.

Tether tokens are assets that move across the blockchain just as easily as other digital currencies but that are pegged to real-world currencies on a 1-to-1 basis.

Tether tokens are referred to as stablecoins because they offer price stability as they are pegged to a fiat currency. This offers traders, merchants and funds a low volatility solution when exiting positions in the market.

All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether’s reserves.

As a fully transparent company, we publish a daily record of the current total assets and reserves.

Tether supports US dollars (USD), euros, Mexican peso, offshore Chinese yuan, and Gold, with the following Tether tokens, respectively: USD₮, EUR₮, MXN₮, CNH₮ and XAU₮.

Tether tokens enable businesses – including exchanges, wallets, payment processors, financial services and ATMs – to easily use fiat currencies on blockchains. Some of the largest businesses in the digital currency ecosystem have integrated Tether tokens.

View industry supporters.

Individuals can also use Tether-enabled platforms to transact with Tether tokens.

Latest news

FT Fixation Continues: Same Rehashing of Selective Old News on New Medium of Communication

We are unsure what has led the Financial Times to take up such an agenda with Tether, or its obscure fascination with our executives. We believe that there are more important things to report on when it comes to the state of financial innovation than the personal lives of our company’s executives who are private citizens and principals at private companies. We also find it odd that a leading global publication is still fixated on a lawsuit that has been settled and responded to countless times over the past three years when there is so much exciting innovation happening every day right before our very eyes. What we do know is that time and time again, Tether has proven itself to be essential to the crypto ecosystem. A trailblazer in its category, Tether was the first stablecoin, has withstood multiple black swan events in crypto, and has never refused a redemption in its history. Trailblazers are a special breed in business -- they have very big visions and are laser-focused on removing challenges that stand in their way. Trailblazers are pioneers, those who take risks and go on a path that isn't already there, blazing a trail and leaving a path for others. Standing at the forefront of the biggest leap forward that the financial industry has ever seen, it's often that Tether is scrutinised more than others, especially its peers and competitors. However, Tether remains committed to leading not only in innovative technology but also in transparency and accountability to its customers, who use stablecoin to make tens of billions of dollars in trades every day. Tether is the first among its peers to disclose the composition of its reserves and deliver public attestations without misleading the public to think they were official audits. Tether’s executive leadership team understands its responsibility as the market leader and fully embraces its role in helping educate the world about how stablecoin technology fits into traditional finance, and how it will reshape payments technologies and the financial infrastructure of the world in decades to come.
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Stress Tests, Resiliency and Bank Runs

In the 1800s and early 1900s, the United States experienced 5 major bank runs. These events, which resulted in enormous losses for depositors and weakened confidence in the banking system became seared into the American psyche.Outside of bank failures, such as Lehman Brothers during the 2008 financial crisis, the 21st century has seen far fewer bank runs, at least in America. Globally, many emerging markets still experience bank runs and bank failures.Bank runs are fundamentally caused by a confidence crisis that pushes depositors to withdraw all their money, and because the bank uses a fractional reserve system, the bank cannot fulfil the redemption requests. A fractional reserve system is when a bank only needs to have a given percentage of total outstanding loans available in its deposits. For example, a bank could lend out $100 million dollars even if it only had $20 million dollars in deposits. The amount of deposits that a bank needs to have on hand against outstanding loans is called the reserve requirement ratio. This was generally set around 10% but was reduced to 0% during the COVID crisis.So rather than pushing for more responsible lending standards and a full reserve or higher reserve requirement, governments instead decided to back the banking system with their printing presses. The lack of fully reserved banks is the underlying cause of all bank runs and is why the world is so vigilant about bank collapses.If banks were fully reserved, they would not have anything to fear from their customers withdrawing funds from the bank at a rapid pace. However, due to the fractional reserve standard, requests from customers to withdraw their funds can trigger bank failures. In order to assess the resiliency of the banking sector post-2008, banks conduct stress tests to evaluate their risk of failure. This can happen if customers tried to withdraw their funds in a short period of time, but typically it would happen due to an economic crisis or some other event that put bank assets at risk. Stress tests are an important aspect of understanding how fragile a financial system is, and they occur every time markets undergo significant volatility.The collapse of Terra can be understood as the Terra stablecoin system failing to pass a stress test that the market imposed on it. De-Fi protocols face similar challenges when market volatility emerges, and not all of them successfully pass the test.Why is USD₮ More Resilient?USD₮ has been proven time and time again to be able to withstand market volatility, crashes, and fund redemptions that would cause many other protocols and especially banks to fail.How is it that USD₮ is more resilient than all of these other institutions? The answer is simple: USD₮ is fully reserved.All of the challenges that other protocols and banks face are only problems because the systems are not fully reserved. If any given financial system doesn’t have enough collateral to back its outstanding liabilities, it faces the risk of collapse if it is hit with too many withdrawals or the collapse of the value of its available collateral.But if a system is fully reserved it has no such risk.As long as there is $1 value of collateral for each $1 of outstanding liabilities ( in this case USD₮ tokens) the worst scenario that can occur is the redemption of all liabilities for the underlying collateral.USD₮ Passed its Stress Test with Flying ColorsTether recently faced redemption requests for $10 billion dollars of USD₮ redemptions within a single week and was able to fulfil all requests in full with ease.$10 billion dollars of redemptions represented over 12% of outstanding USD₮ tokens.No bank in the world could process the withdrawal of 12% of its outstanding liabilities within a week.In fact, the size of USD₮ redemptions over the last two weeks rivals the size of the largest banking withdrawals in history. This unrecord is held by requests for $16.7 billion in withdrawals over 10 days from Washington Mutual. This represented redemption requests for 11% of the bank's assets, less than the amount Tether processed with ease.Unlike Washington Mutual, which was shut down and seized by regulators, USD₮ has maintained a stable value and highly liquid markets.Contrary to the fears which are peddled in the market, Tether’s ability to redeem USD₮ tokens for dollars is among the best in the world.The last two weeks were an enormous stress test for cryptocurrency markets, and Tether passed with flying colors.Are USD₮ Redemptions a Problem for Tether?There has been discussion that if redemptions were to continue, it would cause issues for USD₮. This is quite simply not the case.The stability of USD₮, and Tether, does not rely on continuous inflows into USD₮ and is not threatened by outflows. This is because USD₮ is backed 1 to 1 by collateral and redemptions only mean that Tether is exchanging that collateral for USD₮ tokens held by users.Additionally, some critics have stated that the redemptions that Tether experienced were because users moved 10 billion dollars into competitor stablecoins. This is also not true.The vast majority of redemptions went into the traditional finance system, normal banks, and other financial institutions, not into competing stablecoins. While it is true that some competitors did see inflows, it is reasonable to assume some of these inflows could have been from funds redeemed from USD₮, it did not represent a significant majority of redeemed funds.An Update on USD₮ ReservesIn Tether’s latest assurance opinion, Tether announced that over 47% of total USD₮ reserves are now US Treasuries and that commercial paper now makes up less than 25% of USD₮’s backing. Since March 31, 2024 to the present, commercial paper has been reduced by an additional 20%.Tether is committed to further reducing commercial paper as part of its reserves and increasing its holding of US Treasuries. Tether is reducing its commercial paper holdings as rising interest rates create superior risk reward opportunities with US Treasuries. While commercial paper is a secure and widely used cash equivalent, US Treasury bills are more liquid and provide greater flexibility when there are short term liquidity demands. Coupled with rising yields, Treasuries are an attractive and secure collateral option for Tether's reserves. This change in Tether's reserves will be reflected in the next assurance opinion, published quarterly.These announcements are part of Tether’s ongoing commitment to transparency and stability. Tether’s reserves are strong, conservative, and liquid. This is further demonstrated by Tether’s ability to honor $10 billion in redemption requests within days.
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Tether token

Tether supports and empowers growing ventures and innovation as a digital token built on multiple blockchains.

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