What is USDT ERC20? Tether on Ethereum Explained
USDT ERC20 is a version of the Tether stablecoin issued on the Ethereum blockchain, following the ERC-20 token standard. It combines the price stability of fiat currency with the efficiency and programmability of Ethereum's smart contract ecosystem.
Launched in 2017, USDT ERC20 quickly became one of the most widely used digital assets in crypto trading, decentralized finance (DeFi), and cross-border payments. Its official contract address on Ethereum is 0xdac17f958d2ee523a2206206994597c13d831ec7, which can be verified on Etherscan.
USDT ERC20 is pegged 1:1 to the US Dollar and backed by reserves held by Tether Limited, providing users with a stable, liquid asset on Ethereum.
How USDT ERC20 Works
Every USDT token on Ethereum is issued when users deposit real US dollars into Tether Limited's reserves. The tokens are destroyed when users redeem them for fiat. This mechanism keeps the supply matched to actual reserves, maintaining the 1:1 peg with the US Dollar.
- Runs natively on the Ethereum blockchain using the ERC-20 standard
- Compatible with all ERC-20 wallets including MetaMask, Ledger, and Trust Wallet
- Widely supported on all major centralized and decentralized exchanges
- Used as collateral in DeFi lending protocols such as Aave and Compound
As of 2025, USDT has a market capitalization exceeding $140 billion and more than 350 million users worldwide, making it the most traded stablecoin globally.