Tether (USDT) is a blockchain-based cryptocurrency, founded in 2014, which is best known for being a stablecoin tied to the U.S. dollar. Tether Holdings Limited, the company behind USDT, has gained a firm foothold in the digital asset industry with the unique proposition of pegging cryptocurrency to fiat currencies. The founders of Tether are Reeve Collins, Craig Sellars, and Brock Pierce. Based in El Salvador as of 2025, Tether's notable ability to maintain a consistent value relative to the dollar makes it an important tool for traders and investors within the realm of cryptocurrencies.
| Attribute | Information |
|---|---|
| Founding Date | 2014 |
| Headquarters | San Salvador, El Salvador |
| Founders | Reeve Collins, Craig Sellars, Brock Pierce |
| Industry | Cryptocurrency, Blockchain |
| Market Cap | Over $150 billion |
| Key Partners | Elemental Altus Royalties Corp, Orionx, Shiga Digital |
| Parent Company | iFinex Inc. |
Tether was originally launched under the name RealCoin in July 2014 and rebranded as Tether (USDT) later that year. The founding idea was to enable seamless arbitrage between cryptocurrency exchanges with a digital token pegged to the USD, addressing issues related to volatility in the emerging cryptocurrency markets. Tether was initially developed using the Bitcoin blockchain via the Omni Layer protocol to facilitate these operations. By 2015, it was tradeable on the Bitfinex platform, and the concept quickly gained traction. Tether Limited aligned itself with various blockchain protocols over time, including Ethereum and Tron, to improve liquidity and integration options across different crypto ecosystems.
Tether is designed to provide stability in the volatile cryptocurrency market by tethering its digital tokens to national fiat currencies like the U.S. dollar, Euro, and Chinese Yuan. This fiat-collateralized stablecoin assures traders of lower volatility compared to other cryptocurrencies. Managed by iFinex, Tether also runs the Bitfinex exchange, establishing a powerful market presence.
As of 2025, Tether is the third-largest cryptocurrency by market capitalization, significantly impacting the global digital asset market. Its products facilitate low-cost, high-speed transactions primarily on platforms like Ethereum and Tron networks. Tether's positioning in the market capitalizes on the increasing adoption of cryptocurrencies and stablecoins as a means of payment and store of value outside the volatile spaces of Bitcoin and Ethereum. The company maintains substantial U.S. Treasury holdings and continues to focus on building partnerships across emerging markets. Tether has ventured into AI technology, launching open-source projects for Bitcoin mining, positioning itself not only in financial sectors but tech innovation.
Tether stands as a pivotal entity in the cryptocurrency sphere, primarily with its stablecoin, USDT. Offering a semblance of stability in the mercurial cryptocurrency markets, Tether has expanded its scope beyond finance with ventures into AI and a focus on developing strategic partnerships globally. As regulatory frameworks like the GENIUS Act take shape, Tether's adaptive strategy across emerging markets and innovative advancements paves the way for a resilient future. Its role in facilitating digital asset transactions underscores its key position in the evolving landscape of decentralized finance.