Tether (USDT) vs the US dollar
Tether (USDT) is a crypto asset (a stablecoin) whose value is meant to track 1 US dollar. It trades 24/7 on crypto markets; its price in lira can drift from the dollar rate, and it is not the dollar rate.
What is Tether?
The company that issues USDT states that every Tether is pegged 1:1 to the US dollar and fully backed by its reserves, and publishes the amount in circulation on its website. That is the issuer's statement, not a central bank's guarantee.
Source: tether.to ·
The dollar is the official currency of the United States: its banknotes and the dollars in bank accounts are part of the US monetary system. Tether is not a dollar in a bank account; it is held on crypto-asset platforms and in wallets.
Why does its price drift from the dollar rate?
- A separate market: the USDT/TL price is set by trading on crypto-asset platforms; the dollar rate on the currency market.
- 24/7 trading: USDT/TL keeps trading while the currency market is closed at the weekend (weekend rates).
- Supply and demand: limits on moving money in and out of platforms, and bursts of demand, can make USDT/TL trade above (at a premium to) or below (at a discount to) the dollar rate.
Legal status in Türkiye
Law No. 7518 (Official Gazette, 2 July 2024) made setting up and operating a crypto-asset service provider subject to permission from the Capital Markets Board. Under the same law, crypto assets are not covered by investor compensation, and crypto assets held at banks are not covered by deposit and participation-fund insurance.
Source: resmigazete.gov.tr ·
Tether on our site
We never show Tether as the dollar rate: the dollar page shows the dollar rate, and Tether is priced on its crypto page. The rate we use for the Iranian toman is also derived from Iran's Tether market (what is the toman?).
More currency guides
This content is for information only; it is not investment advice.