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Intermediate

What is USDT?

Category:
Digital Assets
Published:June 25, 2025
what-is-usdt

USDT, or Tether, is one of the oldest and most widely used stablecoins in the world. It is issued by a company called Tether Limited and is pegged 1:1 to the U.S. dollar. This means that for every USDT in circulation, the issuer claims to hold $1 in reserve assets such as cash, Treasury bills, or commercial paper.

USDT operates on multiple blockchains, including Ethereum (ERC-20), Tron (TRC-20), and others, allowing it to be fast, flexible, and compatible with various crypto wallets and payment platforms. On Sarafa, USDT is primarily offered via the TRC-20 network due to its low transaction fees and high speed, making it suitable for sending money across borders in seconds.

For users in countries like South Sudan or Uganda, USDT serves as a digital dollar. It allows them to hedge against inflation, receive cross-border remittances, and store value in a stable form. Businesses can use it to settle international payments, pay suppliers, or accept customer funds without relying on volatile local currencies.

Despite being widely adopted, USDT has attracted scrutiny over its reserves and transparency practices. However, it remains a dominant force in the digital finance space due to its liquidity, massive adoption, and integration across DeFi and global platforms.

Sarafa makes it easy for users to buy USDT using local cash, hold it in a secure wallet, and convert it to local currency when needed. As stablecoins become more common in everyday life, USDT will continue to play a central role in the digital economy—especially for frontier markets looking for financial alternatives.

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