What it means
Reserves are not only cash
Tether describes its reserve framework and publishes reserve reports. The composition and reporting date matter: a reserve-backed token should not be described as necessarily backed only by cash held in a bank account.
Transfer and redemption checks
USDt is available through multiple network implementations. Payment instructions must identify the accepted network and token, and users must distinguish exchange trading from direct redemption with the issuer. Direct access, verification, limits and fees are governed by Tether’s terms and can change.
Related concepts
In practice
A concrete example
A merchant rejects a lookalike token even when its ticker says USDT, because its contract does not match the accepted asset.
Technical notes & boundaries
Do not describe USDt as a bank deposit or promise a fixed secondary-market price. Review current issuer restrictions and network support before use.
Go to the source.
Original references used for this definition. Product details and standards can change.