{"id":184,"date":"2026-05-27T19:00:00","date_gmt":"2026-05-27T19:00:00","guid":{"rendered":"https:\/\/bulkpayments.3psmartltd.com\/blog\/?p=184"},"modified":"2026-05-28T23:11:30","modified_gmt":"2026-05-28T23:11:30","slug":"what-is-usdt-main-features-of-usdt","status":"publish","type":"post","link":"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/","title":{"rendered":"What is USDT? Main features of USDT"},"content":{"rendered":"\n<p>The volatility of cryptocurrencies such as Bitcoin and Ethereum poses a barrier for many companies seeking stability in their financial operations. For this reason, the emergence of stablecoins (such as USDT and <strong><a href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdc-main-features-of-usdc\/\" target=\"_blank\" rel=\"noopener\" title=\"\">USDC<\/a><\/strong>) has become an ideal option for individuals and companies seeking a stable value pegged to the US dollar. Below, we will explore the origins and main features of USDT, which have enabled it to consolidate as one of the most popular stablecoins globally and to hold the highest liquidity in the market.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/#What_is_USDT\" >What is USDT?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/#Origin_of_USDT\" >Origin of USDT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/#Backing_and_stability\" >Backing and stability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/#Market_presence\" >Market presence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/#Technological_versatility\" >Technological versatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/#Technical_features\" >Technical features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/#Controversies_regarding_its_reserves\" >Controversies regarding its reserves<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_USDT\"><\/span>What is USDT?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>USDT is a stablecoin (a stable cryptocurrency) issued by the company Tether. Its main objective is to move money safely, protecting its users from the price &#8220;volatility&#8221; of the <strong><a href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/seven-advantages-of-the-crypto-ecosystem-for-mass-payments\/\" target=\"_blank\" rel=\"noopener\" title=\"\">crypto ecosystem<\/a><\/strong>, since, being a stablecoin, it will always maintain the fixed value of the fiat currency represented (in this case, the US dollar), as the relationship with said value will generally be 1 to 1. It is important to note that the name USDT is a combination of the financial symbol for the US dollar (USD) and the initial of the company Tether (T).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Origin_of_USDT\"><\/span>Origin of USDT<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The USDT project emerged from the Mastercoin blockchain, which served as the main communication protocol, capable of operating on top of Bitcoin and creating a series of &#8220;layers&#8221; that enabled the execution of other crypto assets. The founding members of Mastercoin (Brock Pierce, Craig Sellars, and Reeve Collins) launched Realcoin, a project that used the Omni Layer protocol and operated on the Bitcoin blockchain.<\/p>\n\n\n\n<p>Thanks to the Omni Layer protocol, which ran on a second layer of the Bitcoin blockchain, operations could be carried out with representations of any type of asset. At the end of 2014, specifically on November 20, Reeve Collins (CEO) announced that Realcoin would change its name to Tether and subsequently created three stablecoins: USDTether (USDT), EuroTether (EURT), and YenTether (YENT). The purpose of each stablecoin was to represent a fiat currency (dollar, euro, or yen); however, the project that experienced the most demand and popularity over time was USDT.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Backing_and_stability\"><\/span>Backing and stability<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>USDT maintains a 1:1 parity with the US dollar. This means that for every token in circulation, there is an equivalent value in reserves, allowing users to transact with the certainty that their &#8220;digital dollar&#8221; can always be redeemed for a traditional dollar.<\/p>\n\n\n\n<p>It is worth mentioning that Tether&#8217;s reserves are primarily composed of short-term US Treasury bills, cash, and highly liquid equivalents. This distribution aims to maintain parity for the stablecoin in high-demand scenarios, offering companies and institutions a reliable asset for their commercial operations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_presence\"><\/span>Market presence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the main advantages of USDT for users is its high liquidity, which exceeds that of any other stablecoin. This liquidity translates into active trading pairs on practically all exchanges worldwide, as well as widespread acceptance across DeFi protocols and payment platforms. For companies making mass payments, this liquidity is key, as it allows them to move large volumes of capital without affecting asset prices and with low settlement times.<\/p>\n\n\n\n<p>Since its launch, USDT has experienced sustained growth, reaching a market capitalization of over 140 billion dollars and positioning itself as the number one stablecoin by circulating volume. In this way, its mass adoption has turned it into an indispensable asset for exchanges, companies, and payment platforms that require immediate liquidity and global access without the limitations of the traditional financial system.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"339\" src=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-content\/uploads\/2026\/05\/What-is-USDT-Main-features-of-USDT.png\" alt=\"What is USDT? Main features of USDT\" class=\"wp-image-185\" style=\"width:500px\" srcset=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-content\/uploads\/2026\/05\/What-is-USDT-Main-features-of-USDT.png 624w, https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-content\/uploads\/2026\/05\/What-is-USDT-Main-features-of-USDT-300x163.png 300w\" sizes=\"auto, (max-width: 624px) 100vw, 624px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Technological_versatility\"><\/span>Technological versatility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>USDT is available on more than 30 blockchains, including Ethereum, Tron, Solana, Polygon, Avalanche, BNB Chain, among others. This diversity allows users to choose the network that best suits their operational needs, whether prioritizing execution speed, network security, or commission costs.<\/p>\n\n\n\n<p>This versatility is especially useful for companies integrating cryptocurrency payments into their infrastructure, as they can select the most convenient blockchain based on transaction volume and the profile of their recipients.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Technical_features\"><\/span>Technical features<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>USDT does not have its own blockchain; it operates as a token across multiple networks using different standards: primarily ERC-20 on Ethereum, TRC-20 on Tron, and also on Solana, BNB Chain, Polygon, Avalanche, Arbitrum, and more than 10 other blockchains. Its supply is dynamic, with no upper limit, as it is created (minted) or destroyed (burned) in response to demand and reserves. USDT generally uses 6 decimal places and features specific smart contracts for each network.<\/p>\n\n\n\n<p>USDT has centralised controls that allow pausing transfers or &#8220;blacklisting&#8221; certain addresses. Its speed and cost depend on the blockchain used; TRC-20 is the cheapest and fastest option, while ERC-20 offers greater security and access to the DeFi ecosystem.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Controversies_regarding_its_reserves\"><\/span>Controversies regarding its reserves<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>USDT is not free from controversy, as throughout its history, the company Tether Limited has faced several questions about the transparency of its reserves\u2014that is, whether it truly holds the full amount of dollars backing the tokens in circulation. For example, in 2021, the CFTC fined the company 41 million dollars for false statements about reserves, while the New York Attorney General&#8217;s Office (NYAG) also fined the company 18.5 million dollars for concealing the lack of reserves and using client funds to cover losses at Bitfinex.<\/p>\n\n\n\n<p>In response to these events, the company currently publishes quarterly attestations (limited reviews by BDO Italy) and has significantly increased its holdings of US Treasury Securities (more than 80% of its reserves) to build greater trust and stability, while maintaining a transparent website.<\/p>\n\n\n\n<p>Tether has created a system called Proof of Reserves, which allows performing the &#8220;Tether Equivalence&#8221; through the &#8220;accounting cross-check&#8221; of the blockchain and its bank accounts. In this way, the system can ensure the 1:1 relationship is maintained, a fundamental feature of its platform.<\/p>\n\n\n\n<p>It is important to highlight that, despite these setbacks, USDT remains the most popular stablecoin globally, demonstrating the level of trust its users have in it.<\/p>\n\n\n\n<p><strong><em>What do you think about this topic? Do you know any additional features about USDT?<\/em><\/strong><\/p>\n\n\n\n<p>If you are interested in making a <strong><a href=\"https:\/\/bulkpayments.3psmartltd.com\/\" target=\"_blank\" rel=\"noopener\" title=\"\">group payment in USDT<\/a><\/strong>, you can contact us via the <strong><a href=\"https:\/\/bulkpayments.3psmartltd.com\/contact-us\/\" target=\"_blank\" rel=\"noopener\" title=\"\">following link<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The volatility of cryptocurrencies such as Bitcoin and Ethereum poses a barrier for many companies seeking stability in their financial operations. For this reason, the emergence of stablecoins (such as USDT and USDC) has become an ideal option for individuals and companies seeking a stable value pegged to the US dollar. Below, we will explore &#8230; <a title=\"What is USDT? Main features of USDT\" class=\"read-more\" href=\"https:\/\/bulkpayments.3psmartltd.com\/blog\/what-is-usdt-main-features-of-usdt\/\" aria-label=\"Read more about What is USDT? Main features of USDT\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[],"class_list":["post-184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stablecoins"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/posts\/184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/comments?post=184"}],"version-history":[{"count":1,"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/posts\/184\/revisions"}],"predecessor-version":[{"id":186,"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/posts\/184\/revisions\/186"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/media\/185"}],"wp:attachment":[{"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/media?parent=184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/categories?post=184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulkpayments.3psmartltd.com\/blog\/wp-json\/wp\/v2\/tags?post=184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}