The Stablecoins Research——USDT

Since Bitcoin came out, the cryptocurrency market has developed rapidly. However, fierce price fluctuations and the poor exchange channels between cryptocurrency and legal currency bring lots of risks to investors，hindering the development of the market. In 2014, Tether issued the first stablecoin, USDT, which got the largest market share. Taking USDT as an example, this report introduces its issuing process and main mechanism in detail, analyses financial data (market value, trading volume, price data), and lists some problems of USDT, such as excessive issuance, insufficient reserve, opaque audit, manipulation of Bitcoin price and so on. In addition, in September of this year, the New York Department of Financial Services approved two stable currency issuance for the first time , PAX and GUSD, which are better in information disclosure and reserve maintenance. As the bridge between legal currency and other cryptocurrencies, stablecoins could face stricter regulations in the future.