Tether, a stable-value coin, was created in 2014 by Craig Sellars, Brock Pierce, and Reeve Collins with the purpose of mirroring the price of USD. This peg with the U.S. Dollar is maintained by holding financial assets whose value remains equal to the total USDT coins in circulation.
While initially compatible with BTC, USDT (a second-layer token) can now work on multiple blockchains including ETH. Cryptocurrencies can be volatile and USDT provides stability by maintaining its peg and can act as an inflation hedge as well as an instrument of safety.
Further, Tether’s transparency page divulges the total number of tokens in circulation and the value of its reserves on a daily basis.
Tether is useful for exchanges, wallets, financial services and payment processors. Currently, it supports multiple fiat currencies including the USD, Euro, Chinese Yuan, Mexican Peso, and British Pound Sterling, as well as Gold.