Is Tether (USDT) built on Ethereum blockchain?

Is Tether (USDT) built on the Ethereum blockchain?

Two of the largest cryptocurrencies that rank slightly below Bitcoin are homologous of sorts. For some time now, Ether (ETH) and Tether (USDT) became a cause of confusion for early crypto enthusiasts. However, tether is not only spelled differently and is an independent project but also not a typical cryptocurrency like Bitcoin or Ether. The value of the USDT must always match the value of the USD due to the 1:1 correlation, making it a stable currency.

Another question that many are asking is whether Tether is based on the Ethereum blockchain. Every cryptocurrency, including stablecoins, needs a distributed ledger to operate on. Does Tether use the Ethereum network or does it have its own blockchain protocol? Let’s explore the Tether ecosystem to find answers and understand the basic characteristics of the stablecoin.

What is the Tether blockchain?

The Tether ecosystem is made up of tokens but it is not an independent blockchain. In Bitcoin, Ether and other cryptocurrencies such as Solana and Cardano, the cryptocurrency comes with the original blockchain protocol. However, Tether is an established cryptocurrency ecosystem where new tokens are issued with the claim that each USDT is backed by sufficient reserves.

Tether is said to have started with the Bitcoin blockchain as its transfer protocol. Here, the tokens can be transferred to the Omni Layer, but the Ethereum blockchain was soon favored. Notably, Ethereum sees itself as a network for developers seeking to deploy decentralized products. One such product is the ERC-20 token, and Tether is in the same group. In fact, it is the largest ERC-20 token by market capitalization. The Tether ecosystem also advises users to carefully conduct token transfers as it also uses blockchains other than Ethereum as the transfer protocol.

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Ether and Tether

Ether is the primary cryptocurrency of the Ethereum mainnet with its utility as a payment token. On the other hand, Tether is not a native cryptocurrency for any blockchain protocol. It is a token that can be issued on any blockchain network, including Ethereum, Algorand, and Solana. Tether is establishing itself as a digital token for fast payment transfers using the blockchain, with its value pegged 1:1 to the US dollar.


Tether uses blockchain technology to support the movement of USDT tokens from sender to recipient, with a specific address within the network. This blockchain could be Ethereum or any other currency, including Bitcoin. Tether now issues tokens pegged not only to the US dollar but also to other fiat currencies, including the Chinese yuan and the euro.

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