What USDT is and why it trades near $1
A plain explanation of the USDT stablecoin: who issues it, how it keeps its dollar peg, how it differs from bitcoin and what the risks are.
USDT, or Tether, is a stablecoin: a cryptocurrency pegged to the US dollar. One USDT is meant to equal one dollar. It is the most popular crypto asset for transfers and for holding savings in dollar terms.
Who issues USDT
The token is issued by Tether. The company states that every USDT in circulation is backed by reserves, mostly short-term US Treasury bills, cash and other assets, and it publishes regular reserve reports.
Why it stays near $1
If USDT trades below a dollar, large players buy it up and redeem it with the issuer for $1. If it trades above, they mint new tokens for dollars and sell them. This arbitrage keeps the price close to $1.
At Kazakhstan exchangers USDT usually costs slightly more than the official dollar rate. The gap comes from the spread, the exchanger's markup and banking costs. Compare current prices on the home page.
USDT vs bitcoin
| USDT | Bitcoin | |
|---|---|---|
| Price | About $1 | Floats freely |
| Used for | Transfers, payments, holding | Investment, savings |
| Issuer | Tether | None |
| Main risk | Trust in reserves | Volatility |
Networks
The same USDT exists on several blockchains: Tron (TRC20), Ethereum (ERC20), TON and others. They differ in fees and speed, and their addresses are not interchangeable. See the lesson on TRC20, ERC20 and TON.
Risks
- Issuer. If trust in Tether's reserves weakens, the price can drift from the dollar.
- Freezes. Tether can freeze USDT on an address at the request of law enforcement.
- Transfer mistakes. Sending to the wrong network or address is usually irreversible.
In short
USDT is a convenient way to hold and move money in dollar terms. Buy it only from licensed exchangers and check the network before every transfer.
Updated October 6, 2026