USDT is a stablecoin pegged 1:1 to the US dollar. Here’s how it’s created: 1. Fiat In: Users deposit USD with Tether Ltd. 2. Minting: Tether mints equivalent USDT tokens. 3. Blockchain: USDT is issued on chains like Ethereum, Tron, or Solana. 4. Backed: Each USDT is (allegedly) backed by reserves (cash, T-bills, etc.). 5. Redemption: Users can return USDT for USD, and the tokens are burned.