Tether (USDT) is the most widely used stablecoin issued by Tether Limited in 2014. A stablecoin is a type of cryptocurrency whose value is pegged to an outside asset such as the US Dollar or Gold and offers minimal price volatility. USDT is pegged to the US Dollars that are held in Tether Limited's reserve balance, which can be minted through the Tether platform.
USDT is said to be created with the purpose of combining the unlimited nature of cryptocurrencies — which removes the need of trusted third-party intermediaries — with the stable value of the US dollar. Similar to Bitcoin or any other cryptocurrency, USDT can be traded 24/7 on an active global market.
Tether is now available on other blockchains, including Ethereum (ETH), Tron (TRX) and EOSIO (EOS), which allow for the creation of new assets natively on their blockchains.