Tether is the company behind USDT, the world’s largest stablecoin by market capitalization and the most traded cryptocurrency by volume — often surpassing even Bitcoin in daily trading activity. Founded in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars, the company operates from the British Virgin Islands and has become one of the most consequential and controversial entities in the crypto industry.
USDT is pegged to the US dollar, with Tether claiming each token is backed by reserves including cash, commercial paper, Treasury bills, and other assets. The stablecoin is available on nearly every major blockchain and is especially dominant in Asian markets and on exchanges that don’t support direct fiat deposits. For many crypto users worldwide, USDT is their primary on-ramp to the digital asset ecosystem.
The company’s reserve composition has been a persistent point of debate. Tether has faced scrutiny from regulators and critics questioning whether its reserves fully back all outstanding USDT. The company settled with the New York Attorney General’s office in 2021, paying an $18.5 million fine and agreeing to regular reserve disclosures. Since then, Tether has shifted its reserves heavily toward US Treasury bills and reduced exposure to commercial paper.
Despite the controversies, USDT’s market cap has consistently grown, exceeding $80 billion. Tether has become enormously profitable — the company reported billions in profit, largely from interest earned on its Treasury holdings.
Tether has expanded beyond stablecoins, investing in Bitcoin mining, artificial intelligence, and peer-to-peer communications technology. The company also issues stablecoins pegged to other currencies, including the euro (EURT) and the Mexican peso (MXNT). Love it or not, USDT’s position as the backbone of crypto trading liquidity makes Tether one of the most systemically important companies in the blockchain industry.
