Tether's USDT Stablecoin Price Diverges from Dollar Target

Tether (USDT) is a stablecoin issued by Tether that aims to maintain its value close to the U.S. dollar.

The value of USDT is based on reserves held by Tether, which publishes information about these reserves, including their composition and the scope of independent assurance work.

USDT can be used on different blockchain networks, but transfers require both sender and receiver to support the same network. Fees may be paid with an asset separate from USDT.

The price of USDT can diverge from its dollar target due to differences in trading pairs and liquidity conditions. This divergence can also widen the difference between USDT and USD prices.