Tether (USDT) is a digital asset that is designed to be pegged to the value of the US dollar. It is issued by Tether Limited, a company registered in the British Virgin Islands, and is based on the Bitcoin blockchain. Tether claims that each of its tokens is backed by a corresponding US dollar held in reserve, allowing it to maintain a stable value.

As of December 10, 2022, Tether has a market capitalization of over $20 billion, making it the fourth-largest digital asset. It has a total supply of over 28 billion tokens, with over 28 billion currently in circulation.

One of the key uses of Tether is to provide a stable digital currency for use in cryptocurrency markets. Since Tether is pegged to the US dollar, it can be used to trade against other cryptocurrencies without being subject to the same volatility. This makes it a popular choice for traders who want to hedge against market fluctuations or who want to avoid the need to convert between different cryptocurrencies.

Tether has also been used by cryptocurrency exchanges as a way to provide liquidity and enable users to withdraw funds in fiat currencies. Many exchanges offer Tether as one of the available withdrawal options, allowing users to convert their cryptocurrencies into a stable digital asset and then withdraw it to their bank account.

However, Tether has faced controversy and criticism in the past. In 2019, the New York Attorney General’s office launched an investigation into Tether and its affiliated company, Bitfinex, alleging that the companies had engaged in fraudulent activity and misused customer funds. The investigation is ongoing, and Tether and Bitfinex have denied any wrongdoing.

Despite these controversies, Tether remains a popular and widely used digital asset. Its stability and widespread use on cryptocurrency exchanges make it an important player in the world of digital currencies.