How stable is the stablecoin Tether (USDT)? We analyze its exchange rate to the ruble, the advantages of the TRC20 network, the project's financial reserves, and future predictions.
Table of Contents
- What is Tether (USDT) and Why It Matters
- Tether's Exchange Rate to the Ruble: Influencing Factors
- Risks for Investors
- The Future of Tether and Stablecoins in General
Tether's USDT stablecoin accounts for nearly half of global trading volume, remaining the primary tool for traders and investors. Its value is pegged 1:1 to the US dollar, making USDT a convenient trading asset in volatile crypto markets. However, behind this apparent stability lie significant regulatory risks—from regulatory pressure to questions about the token's actual backing.
What Is Tether (USDT)?
Tether (USDT) is a stablecoin—a cryptocurrency whose value is pegged to the US dollar at a 1:1 ratio. It was created to reduce volatility in the crypto market, allowing traders to quickly transfer funds between exchanges without converting them into fiat currencies. In recent years, USDT has expanded beyond crypto exchanges and is now used for international transfers, payments, and purchases.
USDT plays a key role in the crypto economy:
- Used for trading and hedging risks.
- Serves as a "safe haven" during market downturns.
- Simplifies settlements between crypto exchanges and market participants.
Dollar Pegging and Reserves
Tether uses the following assets to maintain USDT's peg to the dollar:
- Cash dollars—held in bank accounts.
- US Treasury bills—low-risk short-term government securities.
- Corporate commercial papers—company debt obligations.
- Other assets (including cryptocurrencies and loans).
However, Tether has faced criticism for lack of transparency. Since 2019, Tether executives and the company itself have been subjects of US regulatory investigations. In 2021, the Commodity Futures Trading Commission (CFTC) settled claims against Tether and its affiliated exchange Bitfinex, requiring them to pay $42.5 million in fines. Though Tether periodically publishes financial reports confirming reserves, an independent audit has yet to be conducted.
USDT Blockchains
The USDT stablecoin operates across more than 15 blockchain networks. The most widely used are Ethereum and Tron, accounting for about 98% of all issued assets, with a combined market cap of $153 billion. Transaction volumes in these networks are nearly identical—Ethereum saw $780 billion in Q1 2025, while Tron processed $770 billion. Solana accounted for $140 billion, while other blockchains (BNB Chain, Avalanche, Arbitrum, etc.) handled the remaining $351 billion.
Despite similar market caps for USDT, Ethereum leads in large transactions (above $10M), while Tron dominates smaller transactions (under $1M).
Tether's Exchange Rate to the Ruble: Influencing Factors
USDT's exchange rate against the Russian ruble has dipped below ₽79. On Bybit’s P2P platform, it is traded at ₽77–78, while online exchangers list rates around ₽78 for Russian bank card transfers (as of May 30, 2025). Earlier this year, USDT hit ₽105, peaking on January 18—coinciding with Bitcoin’s local high of $110K on January 20.
Despite its dollar peg, USDT occasionally deviates from $1. During crises (e.g., FTX collapse), spreads can reach 10%. High crypto market volatility also drives demand for USDT, temporarily inflating its price relative to the official dollar rate.
Risks for Investors
Despite periodic financial disclosures from Tether, USDT carries risks, including:
- Reserve Depreciation: If reserves include troubled assets (e.g., defaulted US bonds), trust in USDT could erode.
- Regulatory Threats: Global stablecoin laws remain unclear, varying by jurisdiction.
- Illegal Use: Chainalysis reports USDT is increasingly used for money laundering. Tether has frozen millions in illicit funds, including ₽2.5B from Russian exchange Garantex in March 2025.
The Future of Tether and Stablecoins
Stablecoins now facilitate two-thirds of all crypto transactions (Chainalysis). Experts note their growing role in blockchain’s integration with traditional finance.
Key Developments:
- US Leadership: President Trump’s January 2025 executive order prioritized dollar-backed stablecoins, prompting major US banks (JPMorgan, Bank of America) to explore joint stablecoin issuance.
- Global Expansion: Euro-, yuan-, and dirham-pegged stablecoins are emerging (e.g., Circle’s UAE project).
- CBDC Competition: Central banks worldwide are developing digital currencies (CBDCs), potentially displacing private stablecoins. The ECB warns of dollar stablecoin dominance, while China and the EU advance their CBDCs.
Collapse Scenarios
USDT’s peg could destabilize due to:
- US bond defaults.
- Crypto market panic (e.g., Bitcoin crash).
- Exchange freezes (Binance, Coinbase halting USDT trading).
FAQs
Q: Is USDT fully backed by dollars?
A: Tether claims reserves include cash, bonds, and other assets, but lacks independent audits.
Q: Why does USDT’s ruble rate fluctuate?
A: Demand shifts and regulatory pressures cause deviations from the dollar peg.
Q: Could CBDCs replace USDT?
A: Yes, if central banks successfully launch digital currencies with similar utility.
👉 Discover more about stablecoin trends
👉 Explore crypto trading strategies