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Tether (USDT): the largest dollar stablecoin
Since 2014· Asset or instrument
Fact, law or dataA rule, statute, definition or measured number.
Tether's USDT is the biggest dollar stablecoin, about $185 billion in mid-2026, issued offshore and used mostly outside the US.
See it on the Money & Finance map →How it works
Launched in 2014 and tied to the Bitfinex exchange, Tether is now based in El Salvador. It issues tokens for dollars and invests reserves mainly in T-bills and reverse repos, plus gold and bitcoin. In 2021 it paid New York $18.5 million and the CFTC $41 million to settle claims it had misstated its backing. USDT is not a US-regulated token; in January 2026 Tether launched USAT, a separate US token issued by Anchorage Digital Bank.
Why it matters
It is the dollar's main crypto channel in emerging markets and exchange trading. Interest on its reserves, plus gains on gold and bitcoin, brought a reported $13 billion profit in 2024.
Facts, rules and data
Quarterly reserve attestations by accounting firm BDO, which are snapshots rather than full audits; the 2021 New York Attorney General and CFTC settlements; on-chain supply data anyone can check.
Debates and risks
Whether its reserves would hold up under a full audit and a mass redemption, and how US rules will treat USDT after July 2028.
Connections (3)
▸Tether (USDT): the largest dollar stablecoin holds over $100 billion of Treasury bills (T-bills)Fact, law or data
The connection
Tether invests most of the dollars it receives for USDT in short-term US government debt. On June 30, 2026 its reserves held about $115 billion in T-bills plus about $26 billion in Treasury reverse repos, against about $184 billion of tokens. The interest, close to the Fed's rate, is Tether's main profit.
When and why
Tether shifted from commercial paper to T-bills in 2022; holdings are reported in quarterly attestations.
How we know
Quarterly attestations by BDO, which are point-in-time checks, not full audits.
Debates and risks
How quickly Tether could sell its bills in a run, and how much its gold and bitcoin holdings add to risk.
▸Tether (USDT): the largest dollar stablecoin is the token most used in Pig-butchering crypto romance scamsMainstream view
The connection
Scammers ask victims to send USDT because it moves fast, cheaply and around the clock, especially on the Tron blockchain, and is easy to cash out through brokers in Southeast Asia. Unlike cash, though, Tether can freeze tokens, and it has frozen funds when police identify scam wallets.
When and why
Southeast Asian scam compounds since about 2020; in 2023 a freeze with OKX and US officials blocked about $225 million.
How solid is the link?
A January 2024 UN Office on Drugs and Crime report named USDT on Tron as favored by scammers; US court filings trace victims' funds.
Debates and risks
How much scam money still escapes freezes, and whether Tether's cooperation is consistent across countries.
▸USD Coin (USDC) and its issuer, Circle competes with Tether (USDT): the largest dollar stablecoinFact, law or data
The connection
They are the two dominant dollar stablecoins, together about 85% of supply. Tether is bigger and offshore, strongest in emerging markets and exchange trading. Circle sells USDC as the regulated US choice for institutions and payments. Rules help Circle in Europe, where MiCA pushed exchanges to delist USDT; Tether answered US rules with USAT.
When and why
Competing since 2018; in 2026 USDT held about 60% of supply and USDC about 24%.
How we know
On-chain supply data and trackers such as DefiLlama show their market shares over time.
Debates and risks
Whether GENIUS licensing shifts US users toward USDC or USAT, and whether bank-issued stablecoins crowd out both.