USDT (USD Tether)
A stablecoin pegged 1:1 to the U.S. dollar, issued by Tether Ltd, enabling instant, low-cost global payments without traditional banks.
What is USDT (USD Tether)?
USDT is a stablecoin pegged 1:1 to the U.S. dollar, issued by Tether Ltd. It operates on multiple blockchains - including Ethereum (ERC-20) and Tron (TRC-20) - enabling instant, low-cost global payments without traditional banks. It's widely used for international payroll, especially in emerging markets.
How it works
- USDT combines blockchain speed with dollar stability. Key features include:
- Stable value - Pegged 1 USDT ≈ 1 USD
- Multi-chain support - Runs on Ethereum for DeFi access; on Tron for low-fee payments
- Wallet compatibility - Usable via MetaMask, Trust Wallet, and major crypto exchanges
- Borderless access - Ideal for underbanked regions like LATAM and Africa
- Despite concerns around reserves, USDT remains dominant due to liquidity, familiarity, and ease of use.
Why it matters
- USDT solves real-world pain points for global teams:
- No FX fees - Eliminate 2-4% lost on currency conversion
- Instant settlement - Payouts process in seconds
- Banking freedom - Accessible without a local bank account
- Financial control - Freelancers can hold or convert when local rates are favorable
- For startups and remote teams, USDT unlocks faster, cheaper international payroll.
Example
A Venezuelan freelancer earns $2,500 in USDT via Sigma. The funds arrive instantly in their Trust Wallet - no FX losses, no banking delays. They hold the USDT as a hedge against inflation and convert it locally when needed.
