The company responsible for issuing USDT is Tether Limited, a subsidiary of Tether Holdings based in the British Virgin Islands. It was a pioneer in linking digital assets to the value of the US dollar, having been founded in 2014.
Tether, known by its ticker USDT, is the largest and most used stablecoin in the cryptocurrency world, with a market value of over 183 billion dollars.
It was born with the proposal to maintain a constant value, seeking parity with the US dollar in a one-to-one relationship. This feature is fundamental, as it offers the stability of fiat money within the volatile ecosystem of digital assets.
Its operating mechanism is based on the issuance of backed tokens, theoretically, by reserves held by the issuing company, Tether Limited.
Parity and backing
The 1:1 parity with the US dollar is maintained because Tether Limited commits to holding equivalent reserves in liquid assets for each USDT in circulation.
In simple terms, for every USDT token issued, the company claims to have one dollar or an equivalent value asset in its reserves.
These reserves have historically included cash, loans, and other assets, although their exact composition has been the subject of debate and regulatory scrutiny.
Platforms and controversies
USDT exists on multiple blockchain networks, initially popular on Omni and Ethereum (ERC-20), although its highest transaction volume is observed on the Tron network (TRC-20).
This interoperability allows users to move value across different platforms efficiently. The historical controversy surrounding Tether has been the transparency and composition of its reserves, although over time they have improved reporting and conducted certifications to build greater trust in the market.
Regulatory framework and the Genius Law of the USA
The new Genius Law of the United States, passed in 2025, aims to establish a clear regulatory framework for stablecoins.
This legislation requires issuers like Tether Limited to comply with more rigorous standards of financial transparency, backing, and periodic audits to continue operating in the US market.
Source: Banking and Business