Tether (USDT)

Tether (USDT) is the original and most widely traded stablecoin. Its price in AUD closely tracks the US dollar exchange rate, since each USDT is designed to be worth one US dollar. If USDT looks “volatile” in AUD terms on this page, that movement mostly reflects the AUD/USD exchange rate rather than the coin itself.

USDT is a core piece of crypto market plumbing: it is the most common quote currency on many global exchanges.

Tether is a stablecoin issued by Tether Limited. For each USDT in circulation, the issuer says it holds reserves — largely US Treasury bills, cash and other assets — to back the token at one US dollar.

USDT exists on multiple blockchains, including Ethereum (ERC-20), Tron (TRC-20) and Solana, which makes it easy to move US-dollar value quickly between exchanges and wallets.

Tether operates a straightforward issuance model: verified customers wire US dollars to Tether and receive newly minted USDT; redemptions burn tokens when dollars are paid out. Secondary-market trading happens on exchanges worldwide, where arbitrage normally keeps the price close to $1.

Tether publishes regular reserve attestations by an independent accounting firm, but has not undergone a full-scope financial audit, and the composition and location of reserves has been a recurring industry debate.

Tether launched in 2014 (originally as “Realcoin”). It grew to dominate stablecoin liquidity during the 2017 bull market and has remained the largest stablecoin ever since.

In 2021 the company settled with the New York Attorney General (relating to past disclosures about its backing) and separately paid a fine to the US CFTC, without admitting wrongdoing. USDT has briefly traded below $1 during stress events — including multiple episodes in 2018–2022 — but each time returned to the peg.

USDT has no maximum supply: tokens are minted and burned as dollars flow in and out. Circulating supply therefore expands in bull-market periods (when demand for dollar exposure on-chain rises) and contracts in bear markets. The live circulating supply is shown in the pricing data above.

Australians can buy USDT on AUSTRAC-registered exchanges with AUD via PayID or bank transfer. USDT can be a fast way to move value between platforms or to park funds in a dollar-denominated asset between trades.

For tax purposes, the ATO treats stablecoins like other crypto assets: trading one crypto for another — including swapping AUD-pegged value via USDT — is a CGT event.

The main risks are peg risk (USDT trading away from $1), issuer and reserve risk (confidence in Tether's balance sheet), and regulatory risk (stablecoin rules are tightening worldwide). Unlike bank deposits, USDT is not covered by deposit insurance.

Because reserves are not subject to a full audit, USDT carries more counterparty uncertainty than a regulated bank account. Australians holding USDT for long periods may prefer regulated alternatives or simply holding AUD.