What is it?

USDT is Tether’s stablecoin, pegged to the US dollar at a 1:1 ratio. On the Ethereum network, it is issued as an ERC-20 token — the most widely used and oldest version.

ERC-20 is a universal token standard on the Ethereum blockchain, which enables USDT to be used in smart contracts, DeFi, NFTs, and decentralized exchanges (DEXs).

According to Tether Transparency, the total USDT supply across all networks exceeds $100 billion as of 2025. Around 40–50% of that — tens of billions of dollars — exists on the Ethereum network as ERC-20 USDT, used in transactions daily.

Who issues it?

USDT is issued by Tether Limited, a company registered in the British Virgin Islands. The company is required to verify its reserves and publishes audited reports ([link]).

Who uses it?

ERC-20 USDT is used by traders, investors, funds, and DeFi projects. On centralized exchanges (Binance, Bybit, OKX), it is one of the most popular stablecoins for trading.

In DeFi, it is accepted by protocols like Aave, MakerDAO, Curve, and thousands of others.

What is it used for?

• Storing funds without the volatility of ETH or BTC
• Transferring assets between wallets and exchanges
• Trading on decentralized exchanges like Uniswap, SushiSwap, and Balancer
• Providing liquidity in pools or collateral in lending protocols

Advantages of USDT ERC-20

• Full compatibility with the entire Ethereum ecosystem
• Supported by all major wallets (MetaMask, TrustWallet, Ledger, Trezor)
• Widely used in DeFi and NFT applications

Disadvantages of USDT ERC-20

• Higher transaction fees due to gas costs — during network congestion, fees can reach $20–$50 per transaction
• Transaction speed depends on the gas fee set — with low fees, delays can take up to an hour

Where is it used?

• Trading on DEXs and CEXs
• Payments to freelancers and partners who only accept ERC-20
• Staking or liquidity farming in DeFi