

What is Tether stablecoin? What is its operating mechanism? What is the difference from other stablecoins on the market?
Jul 24, 2025 am 06:27 AMTether is a widely used crypto stablecoin designed to provide users with a digital asset experience pegged to the US dollar. It provides stability for digital asset trading by anchoring the value of US dollars 1:1. This article will introduce the operating mechanism of Tether, the differences from other stablecoins, and briefly compare the usage scenarios of mainstream platforms.
- Ouyi OKX ( ) : Supports USDT, USDC, and DAI transactions. USDT is the default valuation unit, and there are various chain choices.
- Binance () : The stablecoin ecosystem is complete, supports USDT/USDC multi-chain recharge and conversion, and has rich supporting financial management.
- Huobi HTX () : uses USDT as the mainstream trading medium and is suitable for various scenarios such as contracts, leverage, and pledges.
- Gate.io gate () : supports a variety of stablecoin trading pairs, especially small currencies and USDT have better liquidity.
- Backed by real assets: Tether (USDT) claims that each token is backed by asset reserves such as USD and other value, including cash, short-term Treasury bonds, etc.
- Anchor mechanism: Maintain 1 USDT ≈ 1 USD through issuance and recycling mechanisms. Users can redeemed through cooperative platforms.
- It is widely deployed on the chain: USDT is currently running on multiple public chains such as Ethereum, TRON, and Solana, making it easier to trade across platforms.
- Centralized issuance management: Tether is responsible for the issuance and management of USDT, has control over the ability to freeze specific addresses according to compliance requirements.
- Compared to USDC: USDC is issued by Circle, with stronger compliance and higher audit frequency, but its market value is slightly lower than USDT.
- Comparative DAI: DAI is a decentralized over-collateralized stablecoin and is managed by MakerDAO. It has stronger risk diversification but more prone to volatility.
- Comparative BUSD: jointly launched by Binance and Paxos, it will be gradually removed from the shelves from 2024, and its circulation will be reduced at this stage.
- Volatility stability: USDT has the highest market value and the widest circulation, but its transparency is controversial; USDC has high transparency and is suitable for compliance scenarios.
- Trading medium: USDT is the most widely used in crypto trading worldwide and supports it on almost all platforms.
- Cross-chain bridge transit: supports multi-chain deployment, which facilitates transfer of funds between different blockchains.
- Market value ranking (July 2025): USDT's market value exceeds US$100 billion, ranking first in the world; USDC is about US$32 billion, ranking second; DAI is about US$5.4 billion.
Editor's suggestion
- Newbie users recommend giving priority to USDT for trading, which has the best liquidity and compatibility.
- Pay attention to Tether reserve audit report to reasonably diversify risks, and consider matching with USDC or DAI.
- In the future, the development trend of stablecoins will tend to be regulatory compliance. It is recommended to choose a platform and currency with audit and regulatory qualifications.
The above is the detailed content of What is Tether stablecoin? What is its operating mechanism? What is the difference from other stablecoins on the market?. For more information, please follow other related articles on the PHP Chinese website!

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