USDT explained: how Tether tokens work and what to verify

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Tether issues fiat-referenced tokens commonly known as USDT on several blockchain networks. The tokens are designed to track the US dollar, but they are liabilities of an issuer rather than central-bank money or an insured bank deposit.

Reserve composition, eligible redemption, fees and supported networks can change. Tether publishes reserve reports and product terms, but users should read the current documents rather than rely on an old summary or assume that every exchange customer can redeem directly.

Material risks include loss of the peg, issuer and banking exposure, address freezing, exchange or custodian failure, smart-contract risk and sending tokens on the wrong network.

Issuer references: Tether transparency page and product information document.

This neutral overview is not investment advice.

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