What is USDT (Tether) and what is it used for?

If you live in Brazil or do business with Brazilians, you've probably heard someone call it the "dólar digital", or been asked to pay or get paid "in USDT". So what is USDT, exactly? In one sentence: USDT, also known as Tether, is a cryptocurrency designed to be worth about 1 US dollar. This guide explains, in plain English, how it works, what it's used for and what to watch out for before you use it.

What USDT is, in a nutshell

Most cryptocurrencies, like bitcoin, swing a lot in price. Up one day, down the next. USDT was built to be different: the idea is that 1 USDT is always worth close to 1 dollar.

That's why it belongs to a group called stablecoins. "Stable", here, means "pegged to the dollar". It doesn't mean "risk-free". We explain the difference in stablecoins: what they are and what the risks are.

In practice, USDT is a digital record of dollars that moves on blockchains, the public networks where crypto transfers are recorded. You keep USDT in a digital wallet and can send it to another wallet at any time, including weekends and Brazilian public holidays.

Who issues USDT

USDT is issued by Tether, a private company that has been around since 2014. It creates new USDT when it receives dollars and takes USDT out of circulation when someone redeems it for dollars. These direct swaps with the company are usually made by large clients, not by regular people.

For every USDT in circulation, the company says it holds reserves of equal value. According to Tether's own reports, most of those reserves are short-term US government bonds, plus other assets.

One detail is worth knowing. Those reports are attestations, prepared by an independent accounting firm. An attestation checks fewer things than a full audit. In 2026, Tether announced it had hired a major audit firm to carry out its first full audit. Until then, anyone holding USDT is trusting the company and the figures it publishes.

How USDT stays close to 1 dollar

Imagine USDT starts trading for slightly less than 1 dollar. Those who can deal directly with Tether buy it cheap and redeem it for 1 dollar. That raises demand, and the price climbs back up.

Now the opposite: USDT goes above 1 dollar. The same players hand dollars to Tether, receive newly issued USDT and sell it at the higher price. Supply grows, and the price comes back down.

This back-and-forth is called arbitrage, and it's what keeps the price near 1 dollar. It works well most of the time, but it isn't a guarantee. In moments of market panic, USDT has traded below 1 dollar for a few hours.

USDT is not the same as dollars in a bank

This is the part that confuses people the most. USDT tracks the dollar, but there are important differences:

• No FGC protection. Brazil's Fundo Garantidor de Créditos (FGC), the deposit insurance fund, plays a role similar to the FDIC in the US and protects certain bank deposits. Crypto is not covered.
• It depends on one company. If Tether runs into serious trouble, USDT could lose value.
• It can be frozen. Tether can block the USDT held at specific addresses. It has done so many times at the request of authorities, in cases linked to crime.
• Transfers can't be undone. If you send it to the wrong address, the money may be lost. There's no "chargeback" like with a credit card.

What USDT is used for

People use USDT for different reasons. Some common ones:

• A dollar reference. People who earn or pay amounts in dollars use USDT to keep track of those amounts.
• Moving value at any hour. Transfers between wallets usually take minutes, 24 hours a day, without depending on banking hours.
• Paying and getting paid by people who accept crypto. Some service providers, shops and platforms accept USDT.
• Using crypto platforms. Many exchanges use USDT as the "base currency" for trading other cryptocurrencies.

An example: Sarah is a freelance designer living in Florianópolis. One of her clients abroad pays her in USDT. She receives the USDT in her wallet and decides later when to convert it into reais. In the meantime, its value follows the dollar, not the real.

The price of USDT in reais changes

If USDT is worth about 1 dollar, its price in reais follows the dollar exchange rate. When the dollar rises against the real, USDT gets more expensive in reais. When the dollar falls, it gets cheaper.

So, if you budget in reais, USDT carries currency risk. What you buy today may be worth more or less in reais tomorrow. On top of that, the price you pay includes costs such as the spread and fees. We break each one down in how much it costs to buy and send USDT.

Which networks USDT runs on

USDT exists on several blockchains. It's the same "digital dollar" traveling on different roads. Three of them are widely used in Brazil:

• TRON (the TRC20 standard);
• Ethereum (the ERC20 standard);
• BNB Smart Chain, or BSC (the BEP20 standard).

The network makes all the difference: you have to send USDT on the same network the receiving wallet uses. See how to choose in which network to use to receive USDT.

How to get USDT

To get USDT, you need two things:

1. A wallet, where your USDT is kept. Learn about the options in crypto wallets: what they are and how to protect one.
2. A place to convert reais into USDT, such as an exchange or a conversion service.

The full walkthrough is in how to buy USDT with Pix. Pix is Brazil's instant payment system, created by the Central Bank, and it's how most people move reais today.

Things to watch out for before you start

• Be wary of promised returns. USDT on its own doesn't pay interest. Anyone promising to make it "grow" or "double" deserves suspicion.
• Don't buy from strangers in messaging groups. See the most common USDT and Pix scams.
• Start with small amounts until you feel confident with the process.
• Protect your accounts with two-factor authentication.

Where usdtap fits in

usdtap is an account in Brazilian reais, for individuals and companies. You deposit by Pix from an account under your own CPF or CNPJ (the Brazilian tax IDs for individuals and for companies), and your balance is kept in reais. Whenever you want, you convert it into USDT and send it to your own wallet, on TRON, Ethereum or BNB Smart Chain. Before you confirm, the screen shows the exchange rate, the fee and how much USDT will arrive. If you'd like to know more, see how usdtap works.

Frequently asked questions

Are USDT and Tether the same thing?

In everyday use, yes. Tether is the name of the company that issues the coin, and USDT is the coin's ticker. Many people say "tether" when they mean USDT.

Is USDT the same as a dollar?

No. USDT was designed to be worth about 1 dollar, but it's a cryptocurrency issued by a private company. It isn't money in a bank, it isn't covered by Brazil's FGC deposit insurance and the issuer can freeze it in specific cases.

Does USDT pay interest?

No. Holding USDT in a wallet doesn't generate any return. Its value in reais goes up or down along with the dollar. A promise of fixed returns on USDT is one of the lines most often used in scams.

Is USDT safe?

It depends on which risk we're talking about. The price usually stays close to 1 dollar, but the issuer could run into trouble, the value in reais changes and a transfer sent to the wrong place can't be reversed. Using a well-protected wallet and checking the network and address before every transfer greatly reduces the risk of mistakes.

How much is 1 USDT in reais?

Roughly the same as 1 US dollar in reais, with small market differences. Since the exchange rate moves all the time, always check the current rate before you buy.