USDT, or Tether, is a type of cryptocurrency known as a stablecoin, designed to maintain a stable value by pegging it to a fiat currency, typically the US dollar. Each USDT token is backed by a corresponding reserve of real-world currency held in reserve by the issuing company. This backing ensures that the value of USDT remains relatively stable, making it a popular choice for traders and investors who want to hedge against the volatility of other cryptocurrencies. USDT can be used for a variety of purposes, including trading on cryptocurrency exchanges, transferring value across borders, and as a stable store of value during times of market instability.
