USDT (Tether)

What is USDT (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 USDT 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 USDT 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 Use Case

A Venezuelan freelancer earns $2,500 in USDT via SigmaRemote.
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.

Related Glossary Terms

• USDC

• Stablecoins

• USD Wallet

• Crypto Payroll

Explore More

Pay global teams using USDT – see how SigmaRemote works →
Compare stablecoins: USDT vs USDC →
Explore crypto payroll options →