Tether (USDT)
score
Fees: free to hold; mint/redeem via Tether, network gas on transfers
USDT is the most liquid dollar token and hard to avoid for active traders, but its reserve disclosures remain weaker than regulated peers. Users trade transparency for unmatched market depth. This is not financial advice.
What Tether Is
Tether (USDT) is the oldest and largest stablecoin, launched in 2014 and issued by Tether. It is designed to track the US dollar one-to-one and has become the default settlement and quote asset across the crypto market. It is available on many blockchains, and in most trading venues USDT, not the dollar itself, is the pair everything else prices against.
Where It Dominates
There is one criterion where nothing else comes close: liquidity and acceptance, which we score a perfect 10. USDT has by far the deepest markets and widest exchange support of any stablecoin, and it has maintained its peg through repeated market shocks, earning an 8.5 for peg stability. For an active trader, this depth is the entire point.
Fees
USDT is free to hold. Mint and redeem happen directly through Tether for eligible customers, and on-chain transfers cost the network's gas fee. Most users never touch the issuer and simply pay their exchange's standard trading and withdrawal fees.
The Transparency Question
The weaker scores tell the cautionary half of the story. Reserves and transparency sit at 6 and regulation at 5.5. Tether publishes attestations rather than full independent audits, which has fueled long-running criticism, and it previously settled with the New York Attorney General and the CFTC over past reserve and disclosure misrepresentations. It is also centralized with freeze capability and limited jurisdictional clarity. Users effectively trade disclosure for unmatched depth.
Who It's For
USDT is hard to avoid for active traders who need the deepest liquidity and the universal quote pair. Those who prioritize transparency and regulatory assurance may prefer a better-disclosed alternative for longer-term holdings. This is not financial advice.
Overall 7.1 / 10 — the weighted average of the criteria above. How we score →
- + By far the deepest liquidity and widest exchange acceptance of any stablecoin
- + Available across many blockchains and the default quote pair in most markets
- + Has maintained its peg through multiple market shocks
- − Publishes attestations rather than full independent audits, drawing long-running transparency criticism
- − Settled with the NY Attorney General and CFTC over past reserve and disclosure misrepresentations
- − Centralized issuer with freeze capability and limited jurisdictional clarity
Is USDT safe?
+
USDT has held its peg through many market shocks and is extremely liquid, but its reserve disclosures are attestation-based rather than fully audited, which is why we score transparency only 6. It is centralized, can freeze addresses, and has a history of regulatory settlements, so it carries more disclosure risk than its regulated peers.
Why is USDT so widely used?
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Its liquidity and acceptance are unmatched, which we score 10, because it is the default trading pair on most exchanges and is available across many chains. That network effect makes it the practical base currency of crypto trading.
What are USDT's fees?
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Holding USDT is free. Direct minting and redemption run through Tether for eligible users, and transfers cost only network gas. Everyday costs typically come from your exchange.
Has Tether been in legal trouble?
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Yes. Tether settled with the New York Attorney General and the CFTC over past misrepresentations about its reserves and disclosures. That history is part of why its regulation score is a middling 5.5.
Is USDT a good stablecoin?
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For liquidity and market access it is unrivaled, and it earns a 7.1 overall from us. If your priority is transparency and regulatory standing, better-disclosed options may suit you more.