What is Tether (USDT) and how does it function as a stablecoin?

Tether (USDT) is a fiat-collateralized stablecoin designed to maintain a 1:1 value with the US dollar (with other fiat pegs like EUR or JPY available in some arrangements). Each USDT token is issued on a blockchain and is intended to be backed by reserves held by Tether Limited, allowing users to move value quickly without the volatility typical of other cryptocurrencies. In practice, USDT is used for trading, liquidity provision, and as a cash-like placeholder on crypto exchanges. While the token is widely adopted for stability and liquidity, it’s important to understand that reserve transparency and auditing have been topics of scrutiny; always review the latest official disclosures for the most up-to-date reserve information.

Is USDT truly backed 1:1 with US dollars, and where are the reserves held?

Tether has claimed that USDT is backed by reserves, primarily in USD, but the exact composition of reserves has evolved over time and has included other assets. Tether Limited has published attestations and breakdowns of reserves, but details can change and may not always be fully transparent to the public. The general claim is that a significant portion of USDT is backed by cash or cash equivalents, with other assets allowed to support liquidity. If you need the latest reserve breakdown, check the official Tether Transparency page and the most recent attestations. Be aware that regulatory scrutiny and evolving accounting standards mean reserve disclosures can change.

Where can I buy and use USDT, and what should I know about fees and transfers?

USDT is available on the vast majority of major crypto exchanges, including centralized platforms and some decentralized ones. You can trade USDT for other cryptocurrencies or fiat-backed services on these exchanges, and many platforms use USDT as a stable trading pair. When transferring USDT, fees are typically determined by the issuing platform and the recipient wallet; some wallets and bridges may impose additional network fees. USDT is implemented on multiple blockchains (Omni, Ethereum ERC-20, Tron, and others in some ecosystems), so network fees and transfer times can vary. Always verify the token's contract address and network before sending funds to avoid loss, and factor in potential withdrawal fees when moving USDT off an exchange.

What are the common risks and considerations when using USDT in trading or liquidity provision?

The primary risk with USDT is counterparty and reserve transparency risk: the issuer may face questions about the exact composition and sufficiency of its reserves. Market risk includes regulatory changes affecting stablecoins and the platforms you use to access them. For liquidity providers, impermanent loss is less of a concern with stablecoins, but platform risk (hack, insolvency, or suspensions) remains. Additionally, if you rely on USDT for yield (via lending or liquid staking), ensure you understand the terms, risk of platform default, and the possibility of temporary withdrawal limits. Diversifying across stablecoins and keeping funds in reputable, audited venues can mitigate some risks.

How does USDT fit into a crypto portfolio, and when is it sensible to hold stablecoins like USDT?

USDT serves as a liquidity and risk-management tool within a crypto portfolio. It’s useful for quickly moving in and out of positions without converting to fiat, hedging against short-term market downturns, and providing a stable counterparty for trades during high volatility. Sensible use cases include maintaining a cash reserve to deploy during dips, facilitating quick arbitrage, and serving as a base currency on regional or cross-exchange platforms where direct fiat access is limited. However, keep in mind the reserve and regulatory considerations, and avoid keeping large sums in a single stablecoin on a single platform. Regularly review the security and policy updates from the issuer and the exchange you use.

Tether (USDT) Interest Rates

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Updated: February 27, 2026

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Best USDT Interest Rates

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Lending

30.00% APY

on EarnPark →

Staking

13.00% APY

on Nexo →

Borrowing

1.90% APR

on Nexo →

Comparing USDT rates across 10 platforms to find you the best yields.

Best USDT Lending Options

Highest Rate:EarnPark(30.00% APY)

Maximum yield currently available

Best Overall:Nexo(13.00% APY)

Regulated CeFi with insurance

Best DeFi Option:Syrup(4.26% APY)

Non-custodial, no counterparty risk

Best CeFi Option:YouHodler(20.00% APY)

Swiss-based CeFi platform

Recommendations based on current rates, platform type, and trust factors. Always do your own research before investing.

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Frequently Asked Questions About Tether (USDT) Interest Rates

What is Tether (USDT) and how does it function as a stablecoin?: Tether (USDT) is a fiat-collateralized stablecoin designed to maintain a 1:1 value with the US dollar (with other fiat pegs like EUR or JPY available in some arrangements). Each USDT token is issued on a blockchain and is intended to be backed by reserves held by Tether Limited, allowing users to move value quickly without the volatility typical of other cryptocurrencies. In practice, USDT is used for trading, liquidity provision, and as a cash-like placeholder on crypto exchanges. While the token is widely adopted for stability and liquidity, it’s important to understand that reserve transparency and auditing have been topics of scrutiny; always review the latest official disclosures for the most up-to-date reserve information.
Is USDT truly backed 1:1 with US dollars, and where are the reserves held?: Tether has claimed that USDT is backed by reserves, primarily in USD, but the exact composition of reserves has evolved over time and has included other assets. Tether Limited has published attestations and breakdowns of reserves, but details can change and may not always be fully transparent to the public. The general claim is that a significant portion of USDT is backed by cash or cash equivalents, with other assets allowed to support liquidity. If you need the latest reserve breakdown, check the official Tether Transparency page and the most recent attestations. Be aware that regulatory scrutiny and evolving accounting standards mean reserve disclosures can change.
Where can I buy and use USDT, and what should I know about fees and transfers?: USDT is available on the vast majority of major crypto exchanges, including centralized platforms and some decentralized ones. You can trade USDT for other cryptocurrencies or fiat-backed services on these exchanges, and many platforms use USDT as a stable trading pair. When transferring USDT, fees are typically determined by the issuing platform and the recipient wallet; some wallets and bridges may impose additional network fees. USDT is implemented on multiple blockchains (Omni, Ethereum ERC-20, Tron, and others in some ecosystems), so network fees and transfer times can vary. Always verify the token's contract address and network before sending funds to avoid loss, and factor in potential withdrawal fees when moving USDT off an exchange.
What are the common risks and considerations when using USDT in trading or liquidity provision?: The primary risk with USDT is counterparty and reserve transparency risk: the issuer may face questions about the exact composition and sufficiency of its reserves. Market risk includes regulatory changes affecting stablecoins and the platforms you use to access them. For liquidity providers, impermanent loss is less of a concern with stablecoins, but platform risk (hack, insolvency, or suspensions) remains. Additionally, if you rely on USDT for yield (via lending or liquid staking), ensure you understand the terms, risk of platform default, and the possibility of temporary withdrawal limits. Diversifying across stablecoins and keeping funds in reputable, audited venues can mitigate some risks.
How does USDT fit into a crypto portfolio, and when is it sensible to hold stablecoins like USDT?: USDT serves as a liquidity and risk-management tool within a crypto portfolio. It’s useful for quickly moving in and out of positions without converting to fiat, hedging against short-term market downturns, and providing a stable counterparty for trades during high volatility. Sensible use cases include maintaining a cash reserve to deploy during dips, facilitating quick arbitrage, and serving as a base currency on regional or cross-exchange platforms where direct fiat access is limited. However, keep in mind the reserve and regulatory considerations, and avoid keeping large sums in a single stablecoin on a single platform. Regularly review the security and policy updates from the issuer and the exchange you use.

Tether USDT News

February 26, 2026Wallet in Telegram Adds DeFi “Vaults” to Earn on BTC, ETH and USDt

Telegram’s in-app crypto wallet has launched self-custodial “Vaults,” enabling users to earn yield on Bitcoin, Ether and USDt all without leaving chat.

February 25, 2026US DOJ Seizes $61 Million in USDT Linked to Pig Butchering Scam

The Eastern District of North Carolina seized $61 Million in Tether linked to pig butchering crypto scams, with the help of Tether.

February 25, 2026US Seizes $61M in USDT Tied to Pig Butchering Crypto Scam

US federal agents in North Carolina have seized over $61 million in Tether linked to a pig butchering crypto investment scam.

Platform	Action	Max Rate	Base Rate	Min Deposit	Lockup	US Access
EarnPark	Go to Platform	30% APY	—	—	—	Not US
Nexo	Go to Platform	13% APY	—	—	90 days	Check terms
Nebeus	Go to Platform	13% APY	—	—	—	Not US
YouHodler	Go to Platform	20% APY	—	—	—	Not US
Syrup	Go to Platform	4.26% APY	—	—	—	Check terms
AQRU	Go to Platform	6% APY	—	—	—	Check terms
Compound	Go to Platform	3.28% APY	—	—	—	Check terms

Platform	Action	Max Rate	Base Rate	Min Deposit	Lockup	US Access
EarnPark	Go to Platform	30% APY	—	—	—	Not US
YouHodler	Go to Platform	20% APY	—	—	—	Not US
Syrup	Go to Platform	4.26% APY	—	—	—	Check terms
AQRU	Go to Platform	6% APY	—	—	—	Check terms
Compound	Go to Platform	3.28% APY	—	—	—	Check terms

Platform	Action	Best Rate	LTV	Min Collateral	US Access
Nexo	Get Loan	2.9% APR	—	—	Check terms
Nebeus	Get Loan	10% APR	—	—	Not US
YouHodler	Get Loan	10% APR	—	—	Not US

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