Anatomy of a USDT
It looks like a coin worth one dollar. Let's take it apart and see what's really inside.
The coin doesn't exist
No metal, and no file you own. One USDT is a number next to your address, in a ledger that many computers keep at once.
Address
A long string of characters that works like an account number. Whoever holds its private key controls the balance.
The smart contract
A small program holds the rules: who owns what, and how it moves. On Ethereum, USDT has 6 decimals, so the smallest amount is 0.000001 USDT.
Smart contract
Code stored on a blockchain. Anyone can read it and check what it did.
Contract address
On Ethereum, USDT lives at 0xdAC1…1ec7. A token with the same name at another address isn't Tether's.
One token, many chains
Tether issues USDT on more than a dozen blockchains. On Nov. 4, 2026, about 52% sat on Tron ($92.8B) and 39% on Ethereum ($68.8B).
Gas
The network fee, usually paid in the chain's own coin, such as TRX or ETH. You can hold USDT and still be unable to send it.
Mint and burn
Tether puts USDT into circulation when a verified customer sends it dollars, and pulls it back when that customer cashes out. Everyone else buys and sells on exchanges.
Cashing out at Tether
$100,000 minimum, a $150 verification fee, and the greater of $1,000 or 0.1% per redemption.
The reserves
On Sept. 30, 2026, Tether reported $191.45B in assets against $183.50B in liabilities. About 73% was Treasury bills, repos and cash. The rest: gold, loans, bitcoin and other investments.
Attestation
BDO checked assets and liabilities at one moment, not profit. Tether says KPMG finished a first full audit, for 2025, in August 2026. It hasn't published it.
Reverse repo
A very short loan secured by collateral, usually Treasuries.
Who keeps the interest
Treasury bills pay interest. Tether keeps it, and holding USDT pays you nothing. Tether says it made about $4.5B in operating profit in the first nine months of 2026.
The peg
Nothing forces the price to $1. It stays close because verified traders can buy USDT under $1 and redeem it at Tether for $1. On May 12, 2022, it briefly fell to about $0.95.
Peg
The target price. During that drop, Tether said it redeemed $7B in 48 hours.
The freeze button
Tether can blacklist an address. The USDT there can't move, and Tether can destroy it. BlockSec counted about $5.7B frozen by July 2026. In late October, Tether said it froze over $1.5B more after a suspected Binance hack.
In the code
addBlackList blocks an address, removeBlackList unblocks it, and destroyBlackFunds burns its balance. Only Tether can call them.
The flip side
Tether's terms say it plainly: not legal tender, no FDIC or SIPC protection, and redemptions can be delayed. They also bar most U.S. persons from holding or using the tokens.
GENIUS Act
The 2025 U.S. stablecoin law. From July 18, 2028, U.S. platforms can only offer stablecoins from issuers that qualify. USDT's path hinges on a Treasury decision still pending in the latest reports, from October 2026.
USA₮
Tether's separate token for the U.S., launched Jan. 27, 2026 and issued by Anchorage Digital Bank.
All the pieces
One side you can check yourself. The other you take on trust.
Not affiliated with Tether.