What is USDT? How to use it? The most complete USDT detailed explanation in history
Jul 07, 2025 pm 08:09 PMUSDT is a stablecoin running on the blockchain, mainly used to hedge volatility risks, serve as a convenient medium for trading, realize cross-border transfers and participate in digital asset financial management. 1. USDT achieves price stability through 1:1 anchoring with USD. Unlike the centralized issuance of traditional currencies, it is based on blockchain technology to decentralize circulation; 2. Its application scenarios include hedging in market fluctuations, main trading pairs of trading platforms, low-cost cross-border transfers, and underlying assets of platform financial products; 3. Tether Company regularly releases reserve certificates and third-party audits to ensure that the anchoring mechanism is transparent, but its transparency is still controversial. Users can query on-chain data to verify some information through blockchain browsers.
1. What are the main uses and scenarios of USDT in digital asset trading?
USDT plays multiple roles in digital asset trading and is an important tool for many users to operate. Its main uses include:
- Hedging volatility risks: When the market fluctuates violently, users can convert other highly volatile digital assets (such as Bitcoin, Ethereum) into USDT to avoid the risks brought by price declines. Due to the relatively stable price of USDT, it has become a "safe haven" in the digital asset market.
- Convenient trading medium: USDT is one of the main trading pairs on many digital asset trading platforms. Users can use USDT to purchase various other digital assets without first converting them into traditional currencies, which greatly simplifies the transaction process and improves efficiency. For example, on large trading platforms such as Binance and OKX, the number of USDT trading pairs is very large.
- Achieve cross-border transfer: USDT can be used as a fast and low-cost cross-border transfer tool. Compared with traditional cross-border remittances, USDT transfers faster, lower handling fees, and is not restricted by traditional financial institutions.
- Participate in digital asset financial management: Many digital asset platforms provide USDT-based financial management services, where users can deposit their holdings to obtain profits. This provides users with a way to achieve asset appreciation in the field of digital assets.
2. Summary of the official website of USDT digital assets mainstream exchange
- Binance Binance: ()
- Ouyi OKX: ()
- Huobi: ()
- Gate.io Sesame Opening: ( )
3. What is USDT? How is it different from traditional currencies?
USDT, full name Tether, is a digital asset issued by Tether. Its core feature is that it claims to be anchored to the US dollar at a ratio of 1:1. This means that for every USDT issued, Tether will theoretically hold an equal amount of USD in its reserves. This anchoring mechanism makes the price of USDT relatively stable and the volatility is much smaller than that of other digital assets, so it is also called a "stable currency".
Compared with traditional currencies we use in daily life, such as the US dollar, the euro, etc., the biggest difference between USDT is its form of existence. Traditional currencies are physical banknotes or digital balances on accounts, issued and regulated by central government or central agencies. USDT runs on the blockchain network and is a decentralized digital credential. Its issuance and circulation rely on the technical characteristics of blockchain, rather than the centralized institutions of the traditional financial system. Although Tether is its issuer, its transparency and trust mechanisms are essentially different from traditional financial institutions.
In addition, the circulation of traditional currencies is subject to geographical and time constraints, while USDT, as a digital asset, can achieve near-instant global transfers and is not subject to business hours of traditional financial institutions. This efficiency is an important reason for its popularity in the digital asset market.
4. How to ensure the anchoring mechanism and transparency of USDT?
The anchoring mechanism of USDT is the cornerstone of its stability. Tether claims that every USDT in circulation has an equivalent dollar reserve as support. To prove this statement, Tether will issue reserve certificates regularly and sometimes invite third-party audit agencies to conduct independent audits. These audit reports are intended to show the public the adequacy of their reserves.
However, the dispute over its transparency and adequacy of reserves has never ceased. Critics point out that Tether's audit reports are sometimes not detailed enough, or there are questions about the independence of the audit agency. The public has always been curious about the specific composition and storage location of its reserves. Despite this, USDT is still one of the largest and most widely used stablecoins with market share.
Users can query the USDT circulation through a blockchain browser. For example, on the Ethereum network, the USDT of the ERC-20 standard can be queried through etherscan.io; on the Tron network, the USDT of the TRC-20 standard can be queried through tronscan.org. These on-chain data provide some basic information about USDT issuance and circulation, increasing the transparency of some of its parts.
The above is the detailed content of What is USDT? How to use it? The most complete USDT detailed explanation in history. For more information, please follow other related articles on the PHP Chinese website!

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