USDT Pair

Definition ∞ A USDT pair refers to a trading pair on a cryptocurrency exchange where Tether (USDT) is one of the assets being traded. USDT is a stablecoin pegged to the US dollar, meaning its value is intended to remain constant at approximately one dollar. Trading against USDT allows investors to mitigate volatility risks and easily move between different cryptocurrencies. It functions as a common base currency for digital asset trading.
Context ∞ News frequently references USDT pairs when reporting on cryptocurrency market prices, trading volumes, and liquidity across exchanges. The dominance of USDT as a trading pair reflects its role as a primary liquidity provider and a stable reference point in the volatile crypto market. Discussions sometimes address the backing and regulatory status of stablecoins, which can influence their perceived reliability as trading pairs.