How it works
The token's value proposition depends on Tether's reserve management, redemption framework and market liquidity. Network-specific versions also depend on the relevant blockchain.
What to check
Use Tether's official transparency and legal pages for reserve and issuance information, and verify the correct token contract on the intended network.
- Use issuer reserve disclosures
- Verify the network and token contract
- Understand redemption terms
Limits and risks
USDT can trade close to one dollar for long periods without being equivalent to a bank deposit. Issuer, network and counterparty risks remain.
Primary sources
Circle USDC↗Tether Transparency↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.