Tether (cryptocurrency)
| Tether | |
|---|---|
| Denominations | |
| Symbol | ₮ |
| Code | USD₮, EUR₮, CNH₮, XAU₮, MXN₮[1] |
| Development | |
| White paper | Tether White Paper.pdf |
| Initial release | 2014-10-06 16:39:15 UTC[2] |
| Valuation | |
| Exchange rate | Pegged to reference fiat currency or gold |
| Website | |
| Website | tether.to |
Tether Holdings Limited is a blockchain company founded in 2014, best known for USD₮, a stablecoin designed to maintain a one-to-one peg with the U.S. dollar. It is a U.S. dollar–pegged stablecoin used to reduce cryptocurrency volatility. Despite regulatory scrutiny and a temporary 2022 de-peg, it remains the largest stablecoin and has expanded into technology ventures beyond digital currencies, including artificial intelligence and data infrastructure.
As of September 30, 2025, Tether reported total assets of $181.2 billion against liabilities of $174.4 billion, with 77.23% held in cash and cash equivalents, according to quarterly reserves reports audited by BDO Italia.
In October 2025, Tether International reported net profits exceeding $10 billion for the year, according to its Q3 2025 attestation prepared by BDO as of September 30. During the quarter, Tether’s exposure to the U.S. Treasuries reached approximately $135 billion, ranking it among the largest global holders, while USDT supply exceeded $174 billion. Tether also reported diversified reserves including gold and Bitcoin, excess reserves of $6.8 billion, and continued expansion despite legal settlements and regulatory scrutiny.
Tether is one of the earliest and largest stablecoins, widely used by cryptocurrency investors. In 2022, it reached a market capitalization of nearly $70 billion, while Tether also issued stablecoins pegged to other currencies and gold.
In 2019, Tether (USDT) surpassed Bitcoin to become the most traded cryptocurrency globally, recording the highest daily and monthly trading volumes. It grew rapidly from 2019–2024, surpassing Bitcoin in trading volume and expanding across blockchains. Despite regulatory scrutiny and CFTC fines, it issued stablecoins for multiple currencies, including Mexican peso. By 2024, Tether held over $97 billion in U.S. Treasuries, reported $5.2 billion profit, and expanded into Bitcoin mining, AI, and renewable energy.<ref name="ftn1">Sun Crypto, “Tether”, Achieved</ref>
As of 2025, Tether (USDT) supports 13 active blockchain protocols, including Ethereum, Avalanche, Cosmos, Celo, Kaia, Tron, Liquid, Solana, Polkadot, Tezos, Near, Ton, and Aptos. Additionally, five legacy protocols such as Algorand, EOSIO, Kusama, Omni, and SLP are maintained for historical reference.<ref name="ftn2">Tether Operations, S.A. de C.V., “Supported Protocols and Integration Guidelines”, Achieved</ref> However, Tether (USDT) has faced allegations of money laundering and financial misconduct, though the company maintains compliance with regulations and emphasizes transparency and oversight in its operations.<ref name="ftn3">Investing.Com, “USDT (Tether) linked to money laundering in Southeast Asia, UN reports”, Achieved, Retrieved January 2024</ref>
History
Creation
Tether (USDT) originated from a 2012 white paper by J.R. Willett, which proposed creating new cryptocurrencies on the Bitcoin blockchain. Willett helped implement this concept in Mastercoin, supported by the Mastercoin Foundation, later renamed Omni Foundation. The Mastercoin protocol later became the technological basis for Tether. Brock Pierce, an original member of the Mastercoin Foundation, co-founded Tether, while Craig Sellars, Tether’s founder, served as CTO of the Mastercoin Foundation.
The precursor to Tether, originally called Realcoin, was announced in July 2014 by co-founders Brock Pierce, Reeve Collins, and Craig Sellars as a Santa Monica-based startup. The project issued its first tokens on the Bitcoin blockchain using the Omni Layer Protocol in October 2014, soon rebranding as Tether. Initially, three stablecoins were planned: USTether, EuroTether, and YenTether, with USTether becoming the most widely used.
The first USDT tokens were issued on 6 October 2014 through the Omni Layer on the Bitcoin blockchain. Since its launch, USDT has expanded to 14 different blockchain networks. Realcoin utilized Bitcoin’s infrastructure to enable decentralized asset transfers and contract execution. The project partnered with banks, cryptocurrency exchanges, and ATM providers to facilitate the global buying, trading, and redemption of tokens.
On 20 November 2014, CEO Reeve Collins announced that Realcoin was rebranded as Tether. Trading commenced on Bitfinex in January 2015. By June 2021, the Federal Reserve flagged Tether as a potential financial stability risk, highlighting its growing influence within the global cryptocurrency market.
Tether Holdings Limited was incorporated in the British Virgin Islands on 5 September 2014, owning Tether Operations Limited, Tether Limited, and Tether International Limited. Tether Limited was incorporated in Hong Kong on 8 September 2014, operating tether.to until 15 March 2017, and is registered with FinCEN as a Money Services Business. Tether Operations Limited and Tether International Limited were incorporated in the British Virgin Islands on 15 March 2017 and currently operate tether.to, but none have been registered with the U.S. Securities and Exchange Commission.
In July 2022, Tether began publishing quarterly attestations of its reserves, conducted by the accounting firm BDO Italia, to provide transparency regarding the backing of its tokens. [1] According to The Wall Street Journal, Tether has promised investors audits since at least 2017 but has not completed a full audit. Its quarterly attestations provide only snapshots of assets at a specific time and are considered less rigorous than formal audits.
2015–2016: History of Bitfinex and Tether (2015–2016)
In January 2015, Bitfinex added USD Tether (USDT) to its platform, offering traders a stable, US dollar–pegged alternative amid cryptocurrency market volatility and growing demand for stablecoins.
In 2018, Phil Potter, chief strategy officer of Bitfinex, resigned following the Paradise Papers revelations in November 2017, which identified Potter and Giancarlo Devasini as involved in establishing Tether Holdings Limited in the British Virgin Islands in 2014. In 2022, the Financial Times reported that Giancarlo Devasini and Jan Ludovicus van der Velde founded Bitfinex in 2012 and Tether in 2014. Tether Limited operates as a wholly owned subsidiary of Tether Holdings Limited, based in the British Virgin Islands.
For a brief period, Tether processed United States dollar transactions via Taiwanese banks, which collaborated with Wells Fargo to facilitate the transfer of funds internationally. [2]
On March 31, 2017, Wells Fargo, the last bank processing Bitfinex transactions, ceased all services to Bitfinex and Tether. Bitfinex was not a direct customer but used four Taiwanese banks that relied on Wells Fargo as a correspondent bank. By April 2017, Bitfinex resolved debts from the August 2016 hack by redeeming BFX tokens and filed a brief lawsuit against Wells Fargo seeking damages, which was later voluntarily dismissed. Throughout 2017, concerns arose over Tether issuance, banking restrictions, and market transparency. Leaked Paradise Papers in November revealed shared management between Bitfinex and Tether, contradicting prior claims of independent operations. [3]
Tether currently comprises five distinct tokens. These include United States dollar Tether (USD₮) and Euro Tether (EUR₮) issued on Bitcoin’s Omni Layer, USD₮ and EUR₮ as ERC-20 tokens on the Ethereum blockchain, and, introduced in 2020, USD₮ as a TRC-20 token on the TRON network. In August 2024, Tether announced the launch of a stablecoin pegged to the United Arab dirham (AED₮). The dirham, similar to several other currencies in the Gulf region, is pegged to the United States dollar.